University:
University of Arizona
Course:
MIS 373 | Basic Operations Management
Academic year:

2022
Views:

239

Pages:

1
Author:

5prinzg1s

Problem Set #1 Usually created by a pronouncement from an authoritative body Specific Accounting Principle Financial statements reflect the assumption that the business continues operating Going Concern Assumption Derived from long-used and generally accepted accounting practices General Accounting Principles Every business accounted for separately from its owner or owners Business entity Assumption Revenue is recorded only when the earning process is complete Revenue Recognition Principle Information is based on actual costs incurred in transactions Cost Principle A company records the expenses incurred to generate the revenues reported Matching Principle A company reports details behind financial statements that would impact users’ decision Full Disclosure Principle Select a transaction that affects the accounting equation Decreases an asset and decreases equity Business incurs an expense paid in cash Increases an asset and increases a liability Business purchases equipment on credit Decreases a liability and increases a liability Business signs a note payable to extend the due date on an a payable Decreases an asset and decreases a liability Business pays an account payable with cash Increases an asset and decreases an asset Business purchases office supplies for cash Increases a liability and decreases equity Business incurs an expense that is not yet paid Increases an asset and increases equity Stockholder invests cash in the business