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What do you do? Students will identify where in the accounting cycle each of the following nine concepts can be found or occurs. Business Entity: the finances of the business should be kept separate and apart from the personal finances of the business owner. Going Concern: financial statements are prepared under the assumption the business intends to "stay in business" for the foreseeable future. Full Disclosure: financial statements are complete and contain all relevant information.

What do you do? Students will identify where in the accounting cycle each of the following nine concepts can be found or occurs. Business Entity: the finances of the business should be kept separate and apart from the personal finances of the business owner. Going Concern: financial statements are prepared under the assumption the business intends to "stay in business" for the foreseeable future. Full Disclosure: financial statements are complete and contain all relevant information.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Post-Closing Trial Balance prepared Adjusting and closing entries posted Adjusting and closing entries journalized Accounting Cycle Business transactions generate source document Financial statements created from worksheet Source documents analyzed and entered into a journal Posting of journal data into the ledger Worksheet prepared from ledger information
Transcribed Image Text:Post-Closing Trial Balance prepared Adjusting and closing entries posted Adjusting and closing entries journalized Accounting Cycle Business transactions generate source document Financial statements created from worksheet Source documents analyzed and entered into a journal Posting of journal data into the ledger Worksheet prepared from ledger information
What do you do? Students will identify where in the accounting cycle each of the following nine concepts can be found or occurs. Business Entity: the finances of the business should be kept separate and apart from the personal finances of the business owner. Going Concern: financial statements are prepared under the assumption the business intends to "stay in business" for the foreseeable future. Full Disclosure: financial statements are complete and contain all relevant information. Objective Evidence: the business activity captured in financial records is backed up by proof in the form of verifiable source documents. Matching Principle: revenue from business operations and the expenses incurred to generate that revenue are recorded in the same accounting period. Historical Cost: the financial records report the actual amount paid by the business. Revenue Recognition: revenue is recorded when it is earned, at the time of sale. Consistent Reporting: the same methods are used to prepare financial reports in each accounting period. Accounting Period: the process of financial activities that are completed to produce financial records occur in a specific and distinct time period. Students should provide at least one specific example for where the concept is found AND provide a rationale for why that specific concept is important for accountants to follow. Recall the example provided in the lesson.
Transcribed Image Text:What do you do? Students will identify where in the accounting cycle each of the following nine concepts can be found or occurs. Business Entity: the finances of the business should be kept separate and apart from the personal finances of the business owner. Going Concern: financial statements are prepared under the assumption the business intends to "stay in business" for the foreseeable future. Full Disclosure: financial statements are complete and contain all relevant information. Objective Evidence: the business activity captured in financial records is backed up by proof in the form of verifiable source documents. Matching Principle: revenue from business operations and the expenses incurred to generate that revenue are recorded in the same accounting period. Historical Cost: the financial records report the actual amount paid by the business. Revenue Recognition: revenue is recorded when it is earned, at the time of sale. Consistent Reporting: the same methods are used to prepare financial reports in each accounting period. Accounting Period: the process of financial activities that are completed to produce financial records occur in a specific and distinct time period. Students should provide at least one specific example for where the concept is found AND provide a rationale for why that specific concept is important for accountants to follow. Recall the example provided in the lesson.
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