Acc-153 Chapter 1

Front 1

Accounting

Back 1

The information system that identifies, records, and communicates the economic events of an organization to interested users.

Front 2

Assets

Back 2

Resources owned by a business

Front 3

Balance Sheet

Back 3

A financial satement the reports the assets, liabilities, and stockholders' equity at a specific date

Front 4

Basic Accounting Equation

Back 4

Assets = Liabilities + Owners Equity
(From now on, Owners Equity will be referred to as OE)

Front 5

Bookkeeping

Back 5

A part of accounting the involves only recording of economic events

Front 6

Corporation

Back 6

A business organizaed as a separate legal entity under state corporation law having ownership divided into transferable shares of stock

Front 7

Cost Principle

Back 7

An accounting principle that states that assets should be recorded at their cost

Front 8

Dividend

Back 8

A distribution by a corporation to its stockholders on a pro rata bases. (Pro rata is Latin...Joke for me, the Latin guy)

Front 9

Econoimic Entity Assumption

Back 9

An assumption that requires that the activities of the entity be kept separate and distinct from the activities of its owners and all other economic entities.

Front 10

Ethics

Back 10

The standards of conduct by which one's actions are judges as right or wrong, honest or dishonest, fair or not fair.

Front 11

Expenses

Back 11

The cost of assets consumed or services used in the process of earning revenue.

Front 12

Financial accounting

Back 12

The field of acounting that provides economic and financial information for investors, creditors, and other external users.

Front 13

Financial Accounting Standards Board

Back 13

A private organization that establishes generally accepted accounting principles.

Front 14

Generally Accepted Accounting Principles

Back 14

Common standards that indicate how to report economic events

Front 15

Income Statement

Back 15

A financial statement that presents that revenues and expenses and resulting net income or net loss of a company for a specific period of time.

Front 16

Liabilities

Back 16

Crediroship claims on total assets

Front 17

Managerial accoutning

Back 17

The field of accounting that provides economic and financial information for managers and other internal users

Front 18

Monetary united assumption

Back 18

An assumption stating that only transaction data that can be expressed in terms of money be included in the accounting records

Front 19

Net Income

Back 19

The amount by which revenues exceed expenses

Front 20

Net Loss

Back 20

The amount by which expenses exceed revenues

Front 21

Parnership

Back 21

An association of two or more persons to carry on as co-owners of a businesses for profit

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Proprietorship

Back 22

A business owned by one person

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Retained EarningsStatement

Back 23

A financial statement that summarizes that changes in retained earnings for a specific period of time

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Revenues

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The gross increase in stockholders' equity resulting from business activites entered into for the purpoe of earning income.`

Front 25

Securities and Exchange Commission

Back 25

A governmental agency that requires companies to file financial reports in accordance with generally accepted accounting principles

Front 26

Statement of Cash Flows

Back 26

A financial statement that provides information about that cash infolos (Receipts) and cash outflows (Payments) of an entity for a specific period of time.

Front 27

Stockholders' Equity

Back 27

The ownership claim of total assets of a corporation

Front 28

Transactions

Back 28

The economic events of the enterprise that are recorded by accountants.