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;
24 Cards in this Set
- Front
- Back
|
Accounting
|
the art of recording, classifying, summarizing, and iterpreting results
|
|
|
Financial Statements
|
Business documents that report financial information about a business entity to decision makers.
|
|
|
Financial Accounting
|
The branch of accounting that provides information to people outside the firm
|
|
|
Management Accounting
|
The brance of accounting that generates information for the internal decision makers of a business.
|
|
|
Proprietorship
|
A business with a single owner
|
|
|
Partnership
|
An association of two or more persons who co-own a business for profit
|
|
|
Corporation
|
A business owned by stockholders. A corporation is a legal entity, an 'artificial person' in the eyes of the law
|
|
|
Stockholder
|
A person who owns stock in a corporation. also called a shareholder
|
|
|
Shareholder
|
Another name for stockholder
|
|
|
Stock
|
Shares into which the owners' equity of a corporation is divided
|
|
|
Board of Directors
|
Group elected by the stockholders to set policy for a corporation and to appoint its officers
|
|
|
Generally Accepted Accounting Principles (GAAP)
|
Accounting guidelines formulated by the Financial Accountin Standards Board, that govern how accounting is practical.
|
|
|
Entity
|
An organization or a section of an organization that, for accounting purposes, stands apart from other organizations and individuals as a separate economic unit
|
|
|
Reliability Principle
|
The accounting principle that ensure that accounting reocrds and statements are based on the most reliable data available. also called the objectivity principle
|
|
|
Cost Principle
|
Principle that states that assets and services should be recorded at their actual cost
|
|
|
Growing Concern Concept
|
Holds that the entity will remain in operation for the foreseeable future
|
|
|
Stable-Monetary-Unit Concept
|
The basis for ignoring the ffect of inflation in the accounting records, based on the assumption that the dollar's purchasing power is relatively stable.
|
|
|
Accounting Equation
|
Assets=Liabilities + Owners' Equity
|
|
|
Property, Plant, Equipment
|
Long-lived assets, such as land, buiildings, and equipment used in the operation of the business. Also called plant assets.
|
|
|
Income Statement
|
A financial statement listing an entity's revenues, expenses, and net income or net loss for a specific period. Also called the statement of operations
|
|
|
Statement of retained earnings
|
Sumary of the changes in the retained earnings of a corporation
|
|
|
Balance Sheet
|
List of an entity's assets, liabilities, and owner's equity a sof a specific date. Also called the statement of financial position
|
|
|
Current Asset
|
As assets that is expected to be converted to cash, sold, or consumed during the next 12 months, or within the business' normal operating cycle if longer than a year.
|
|
|
Current Liability
|
A debt due to be paid within one year or within the entity's operating cycle if the cycle is longer than a year
|
