Matching Quiz

Match the terms listed below, with the appropriate desciption from the list on the right.


1				Accounting equation


2				Accounts payable


3				Accounts receivable


4				AcSB: Accounting Standards Board


5				ASB: Auditing Standards Board


6				Assets


7				Balance sheet


8				Balance sheet equation


9				Business activities


10				Business entity principle


11				Business events


12				Business transaction


13				Calendar year


14				Cash flow statement


15				CICA Handbook


16				Comparability


17				Consistency


18				Cost principle


19				Creditors


20				Debtors


21				Economic consideration


22				Equity


23				Expenses


24				Financial statements


25				Fiscal year


26				Generally Accepted Accounting Principles


27				Generally Accepted Auditing Standards


28				Going concern principle


29				IASC: International Accounting Standards Committee


30				Income statement


31				Liabilities


32				Monetary unit principle


33				Natural business year


34				Net assets


35				Net income


36				Net loss


37				Note payable


38				Objectivity principle


39				Owner investments


40				Owner's equity


41				Profit


42				Relevance


43				Reliability


44				Revenue recognition principle


45				Revenues


46				Source documents


47				Statement of owner's equity


48				Withdrawals

Answer choices for questions 1 through 48

A)	Another name for the accounting equation. (p. 42)
B)	Properties or economic resources owned by the business; more precisely, resources with an ability to provide future benefits to the business. (p. 37)
C)	A financial statement that reports the financial position of a business at a point in time; lists the types and dollar amounts of assets, liabilities, and equity as of a specific date; also called the statement of financial position. (p. 37)
D)	The publication of the Canadian Institute for Chartered Accountants (CICA) that details generally accepted accounting principles in Canada. (p. 59)
E)	A 12-month period that ends when a company's sales activities are at their lowest point. (p. 35)
F)	Information must make a difference in the decision-making process. (p. 40)
G)	The value of assets exchanged for goods or services provided to customers as part of a business's main operations; may occur as inflows of assets or decreases in liabilities. (p. 35)
H)	A description of the relationship between a company's assets, liabilities, and equity; expressed as Assets 5 Liabilities 1 Owner's Equity; also called the balance sheet equation. (p. 42)
I)	An accounting year that begins on January 1 and ends on December 31. (p. 35)
J)	The financial statement that shows, by subtracting expenses from revenues, whether the business earned a profit; it lists the types and amounts of revenues earned and expenses incurred by a business over a period of time. (p. 35)
K)	The extent to which information is verifiable and neutral; implies a consensus among different measures. (p. 40)
L)	Provides guidance on when revenue should be reflected on the income statement; the rule states that revenue is recorded at the time it is earned regardless of whether cash or another asset has been exchanged. (p. 41)
M)	Documents that identify and describe transactions entering the accounting process; the source of accounting information, whether in paper or electronic form. (p. 43)
N)	The debts or obligations of a business; claims by others that will reduce the future assets of a business or require future services or products. (p. 37)
O)	The expression of transactions and events in money units; examples include units such as the Canadian dollar, American dollar, peso, and pound sterling. (p. 41)
P)	The accounting guideline that requires financial statement information to be supported by independent, unbiased evidence rather than someone's opinion; objectivity adds to the reliability, verifiability, and usefulness of accounting information. (p. 41)
Q)	All of the transactions and events experienced by a business. (p. 43)
R)	Activities that do not involve an exchange of economic consideration between two parties and therefore do not affect the accounting equation. (p. 43)
S)	Total assets minus total liabilities; represents how much of the assets belong to the owner. Increases with owner investments and net income and decreases with owner withdrawals and net loss. (p. 37)
T)	Assets minus liabilities; another name for equity. (p. 38)
U)	The authoritative committee that identifies generally accepted auditing standards. (p. 59)
V)	A financial statement that describes the sources and uses of cash for a reporting period, i.e., where a company's cash came from (receipts) and where it went during the period (payments); the cash flows are arranged by an organization's major activities: operating, investing, and financing activities. (p. 38)
W)	The rules adopted by the accounting profession that make up acceptable accounting practices for the preparation of financial statements. (p. 40)
X)	The most important products of accounting; include the income statement, statement of owner's equity, balance sheet, and cash flow statement. (p. 34)
Y)	The rule that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold, unless evidence shows that it will not continue. (p. 41)
Z)	A financial statement that reports the changes in equity over the reporting period; beginning equity is adjusted for increases such as owner investment or net income and for decreases such as owner withdrawals or a net loss. (p. 37)
AA)	A liability expressed by a written promise to make a future payment at a specific time. (p. 38)
AB)	Another name for net income. (p. 35)
AC)	Conformity with other or earlier information; using the same accounting procedures from one accounting period to the next. (p. 40)
AD)	Something of value (e.g., products, services, money, and rights to collect money). (p. 43)
AE)	The owner's claim on the assets of a business; more precisely, the assets of an entity that remain after deducting its liabilities; also called net assets. (p. 38)
AF)	Costs incurred or the using up of assets as a result of the major or central operations of a business. (p. 35)
AG)	The distributions of cash or other assets from a proprietorship or partnership to its owner or owners. (p. 37)
AH)	A liability created by buying goods or services on credit. (p. 38)
AI)	An asset created by selling products or services on credit. (p. 37)
AJ)	A one-year reporting period. (p. 35)
AK)	Similarity; ability to be compared with other information. (p. 40)
AL)	Individuals or organizations entitled to receive payments from a company. (p. 38)
AM)	The excess of revenues over expenses for a period. (p. 35)
AN)	The excess of expenses over revenues for a period. (p. 35)
AO)	The principle that requires every business to be accounted for separately from its owner or owners; based on the goal of providing relevant information about each business to users. (p. 40)
AP)	The accounting principle that requires financial statement information to be based on actual costs incurred in business transactions; it requires assets and services to be recorded initially at the cash or cash equivalent amount given in exchange. (p. 41)
AQ)	Rules adopted by the accounting profession as guides for conducting audits of financial statements. (p. 59)
AR)	The transfer of an owner's personal assets to the business. (p. 37)
AS)	An exchange of economic consideration between two parties that causes a change in assets, liabilities, or owner's equity. Examples of economic considerations include products, services, money, and rights to collect money. (p. 43)
AT)	Individuals or organizations that owe amounts to a business. (p. 37)
AU)	A committee that attempts to create more harmony among the accounting practices of different countries by identifying preferred practices and encouraging their worldwide acceptance. (p. 60)
AV)	The authoritative committee that identifies generally accepted accounting standards. (p. 59)

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