Acct 211-Liberty University Exam 1 - Arts Questions And Answers

IASB {Ans: International Accounting Standards Board An independent group (consisting of individuals from many countries), issues International Financial Reporting Standards (IFRS)}IFRS {Ans: International Financial Reporting Standards Identify preferred accounting practices}Principles of Accounting {Ans: 1. Measurement Principle (or Cost Principle) Accounting information is based on actual cost. Actual cost is considered objective. 2. Revenue Recognition Principle a. Recognize revenue when it is earned. b. Proceeds need not be in cash. c. Measure revenue by cash received plus cash value of items received 3. Expense Recognition Principle (or Matching Principle): A company must record its expenses incurred to generate the revenue reported. 4. Full Disclosure Principle: A company is required to report the details behind financial statements that would impact users' decisions}Cash Basis {Ans: Revenues are recognized when cash is received and expenses are recorded when cash is paid. NON GAAP}Credit {Ans: RIGHT SIDE}Source Documents {Ans: -checks -bills from suppliers -purchase orders -bank statements -sales tickets -employee earnings}