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24 Cards in this Set

  • Front
  • Back
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.
A business with a single owner
An association of two or more persons who co-own a business for profit
A business owned by stockholders. A corporation is a legal entity, an 'artificial person' in the eyes of the law
A person who owns stock in a corporation. also called a shareholder
Another name for stockholder
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.
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