Exam 1 Study Guide

(3 pages)
Previewing page 1 of actual document.

Exam 1 Study Guide

Overview of Lectures 1-5


Pages:
3
Type:
Study Guide
School:
University of Alabama
Course:
Ac 310 - Finan Report Analy Bus Activ I
Finan Report Analy Bus Activ I Documents

Unformatted text preview:

AC 310 7th Edition Exam # 1 Study Guide Lectures: 1-5 Lecture 1 (January 8) Environment and Theoretical Structure of Financial Accounting What are the Elements of Financial Statements? Assets: Probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events Liabilities: Probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events Revenues: Inflows or other enhancements of assets of an entity or settlements of its liabilities during a period from delivering or producing goods, rendering services, or other activities that constitute the entity’s ongoing major or central operations Expenses: Outflows or other using up of assets or incurrences of liabilities during a period from delivering goods, rendering services, or other activities that constitute the entity’s ongoing major or central operations Gains: Increases in equity from peripheral or incidental transactions of an entity Losses: Decreases in equity arising from peripheral or incidental transactions of an entity What are the recognition principles? Revenue Recognition: Realization Two Criteria: 1.Earnings process is complete or virtually complete 2.Reasonable certainty as to the collectability of the asset to be received (usually cash) Expense Recognition: Matching The matching principle requires that all expenses incurred in generating revenue for a period also be recognized in the same period



View Full Document

Access the best Study Guides, Lecture Notes and Practice Exams