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28 Cards in this Set

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Accounting
The information system that identifies, records, and communicates the economic events of an organization to interested users.
Assets
Resources owned by a business
Balance Sheet
A financial satement the reports the assets, liabilities, and stockholders' equity at a specific date
Basic Accounting Equation
Assets = Liabilities + Owners Equity
(From now on, Owners Equity will be referred to as OE)
Bookkeeping
A part of accounting the involves only recording of economic events
Corporation
A business organizaed as a separate legal entity under state corporation law having ownership divided into transferable shares of stock
Cost Principle
An accounting principle that states that assets should be recorded at their cost
Dividend
A distribution by a corporation to its stockholders on a pro rata bases. (Pro rata is Latin...Joke for me, the Latin guy)
Econoimic Entity Assumption
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.
Ethics
The standards of conduct by which one's actions are judges as right or wrong, honest or dishonest, fair or not fair.
Expenses
The cost of assets consumed or services used in the process of earning revenue.
Financial accounting
The field of acounting that provides economic and financial information for investors, creditors, and other external users.
Financial Accounting Standards Board
A private organization that establishes generally accepted accounting principles.
Generally Accepted Accounting Principles
Common standards that indicate how to report economic events
Income Statement
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.
Liabilities
Crediroship claims on total assets
Managerial accoutning
The field of accounting that provides economic and financial information for managers and other internal users
Monetary united assumption
An assumption stating that only transaction data that can be expressed in terms of money be included in the accounting records
Net Income
The amount by which revenues exceed expenses
Net Loss
The amount by which expenses exceed revenues
Parnership
An association of two or more persons to carry on as co-owners of a businesses for profit
Proprietorship
A business owned by one person
Retained EarningsStatement
A financial statement that summarizes that changes in retained earnings for a specific period of time
Revenues
The gross increase in stockholders' equity resulting from business activites entered into for the purpoe of earning income.`
Securities and Exchange Commission
A governmental agency that requires companies to file financial reports in accordance with generally accepted accounting principles
Statement of Cash Flows
A financial statement that provides information about that cash infolos (Receipts) and cash outflows (Payments) of an entity for a specific period of time.
Stockholders' Equity
The ownership claim of total assets of a corporation
Transactions
The economic events of the enterprise that are recorded by accountants.