Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
15 Cards in this Set
- Front
- Back
|
account payable
|
the liability created by a purchase on account
|
|
|
accounts receivable
|
a claim against the customer
|
|
|
accounting equation
|
Assets = Liabilities + owner's equity
|
|
|
assets
|
Resouces that are owned by the business
|
|
|
balance sheets
|
a list of the assets, liabilities,and owner's equity as of a specific dae, usually at the close of the last day of a month or a year
|
|
|
business entity concept
|
a concept of accounting that limits the economic data in the accounting system to data related directly to the activities of the business
|
|
|
corporation
|
a business organized under state or federal statutes as a seperate legal entity
|
|
|
cost concept
|
a payment of cash (or a commitment to pay cash in the future) for the purpose of generating revenues.
|
|
|
expenses
|
assets used up or services consumed in the process of generating revenues
|
|
|
Financial Accounting Standards Board(FASB)
|
The authoritative body that has the primary responsibility for developing accounting principles
|
|
|
Generally Accepted Accounting Principles(GAAP)
|
Generally accepted guidelines for the preparation of financial statements
|
|
|
Income Statement
|
a summary of the revenue and expenses for a specific period of time, such as a month or a year
|
|
|
Liabilities
|
the rights of creditors that represent debts of the business
|
|
|
Net Income
|
the amount by which revenues exceed expenses
|
|
|
Net loss
|
the amount by which expenses exceed revenues
|
