Accounting Flash Cards (Part 1)

Front 1

The form of balance sheet that resembles the basic format of the accounting equation, with assets on the left side and liabilities and owners equity sections on the right side.

Back 1

Account Form

Front 2

The liability created by a purchase on account.

Back 2

Account payable

Front 3

A claim against the customer created by selling merchandise or services on credit.

Back 3

Account receivable

Front 4

An information system that provides reports to stakeholders about the economic activities and condition of a business

Back 4

Accounting

Front 5

Assets = liabilities + owners equity

Back 5

Accounting Equation

Front 6

The resources owned by a business

Back 6

Assets

Front 7

A list of the assets, liabilities, and owners equity as of a specific date, usually at the close of the last day of a month or a year.

Back 7

Balance sheet

Front 8

An organization in which basic resources (inputs), such as materials and labor, are assembled and processed to provide goods or services (outputs) to customers.

Back 8

Business

Front 9

A concept of accounting that limits the economic data in the accounting system to data related directly to the activities of the business.

Back 9

Business Entity Concept

Front 10

An economic event or condition that directly changes an entity's financial conditioner directly affects it's results of operations.

Back 10

Business Transaction

Front 11

Public accountants who have met a state's education, experience, and examination requirements.

Back 11

Certified Public Accounts (CPA)

Front 12

A business organized under state or federal statues as a separate legal entity.

Back 12

Corporation

Front 13

A concept of accounting that determines the amount initially entered into the accounting records for purchases.

Back 13

Cost concept

Front 14

The amount by which revenue exceed expectations.

Back 14

Earnings

Front 15

Moral principles that guide the conduct of individuals.

Back 15

Ethics

Front 16

Assets used up or services consumed in the process of generating revenues.

Back 16

Expenses

Front 17

Revenue from providing services

Back 17

Fees earned

Front 18

The branch of accounting that is concerned with recording transactions using generally accepted accounting principles (GAAP) for a business or other economic unit and with a periodic preparation of various statements from such records

Back 18

Financial accounting

Front 19

The author active body that has the primary responsibility for developing accounting principles.

Back 19

Financial Accounting Standards Board (FASB)

Front 20

Financial reports that summarize the effects of events on a business

Back 20

Financial Statements

Front 21

Generally accepted guidelines for the preparation I financial statements.

Back 21

Generally accepted accounting principles (GAAP)

Front 22

A type of financial accounting report that is distributed to external users. The term "general purpose" refers to the wide range of decision making needs that the reports are designed to serve.

Back 22

General Purpose Financial Statements

Front 23

A summary of the revenue and expenses for a specific period of time, such as a month or a year.

Back 23

Income Statement

Front 24

Money received for interest

Back 24

Interest revenue

Front 25

An organization that issues International Financial Reporting Standards for many countries outside the United States,

Back 25

International Accounting Standards Board (ISAB)

Front 26

The rights of creditors that represent debts of the business.

Back 26

Liabilities

Front 27

A business form consisting of one or more persons or entities filing an operating agreement with a state to conduct business with limited liability to the owners, yet treated as a partnership for tax purposes,

Back 27

Limited Liability Company (LLC)

Front 28

A type of business that changes basic inputs into products that are sold to individual customers

Back 28

Manufacturing Businesses

Front 29

A concept of accounting in which expenses are matched with the revenue generated during a period of those expenses

Back 29

Matching Concept

Front 30

A type of business that purchases products from other businesses and sells them to customers.

Back 30

Merchandising Business

Front 31

The amount by which revenue exceed expenses

Back 31

Net Income

Front 32

The amount by which expenses exceed revenue

Back 32

Net Loss

Front 33

A concept of accounting that requires accounting records and the data reported in financial statements to be based on objective evidence.

Back 33

Objectivity Concept

Front 34

The owner's right to the assets of the business

Back 34

Owner's Equity

Front 35

An unincorporated business form consisting of two or more persons conducting business as co-owners for profit.

Back 35

Partnership

Front 36

Items such as supplies that will be used in the business in the future.

Back 36

Prepaid Expenses

Front 37

The field of accounting whereby accountants are employed by a business firm or a not-for-profit organization

Back 37

Private Accounting

Front 38

The difference between the amounts received from customers for goods or services provided and the amounts paid for the inputs used to provide the goods or services.

Back 38

Profit

Front 39

A business owned by one individual

Back 39

Proprietorship

Front 40

The field of accounting where accountants and their staff provide services on a fee basis.

Back 40

Public Accounting

Front 41

A comprehensive leverage ratio that measures the relationship of the claims of creditors to stockholders' equity.

Back 41

Ratio of Liabilities to Owner's (Stockholders') Equity

Front 42

Money received for rent

Back 42

Rent Revenue

Front 43

Costs that benefit only the current period or costs incurred for normal maintenance and repairs of fixed assets

Back 43

Revenue

Front 44

The total amount charged customers for merchandise sold, including cash sales and sales on account.

Back 44

Sales

Front 45

An agency of the U.S. government that has authority over the accounting and financial disclosures for companies whose shares of ownership (stock) are traded and sold to the public

Back 45

Securities and Exchange Commission (SEC)

Front 46

A business providing services rather than products to customers

Back 46

Service Businesses

Front 47

A summary of the cash receipts and cash payments for a specific period of time, such as a month or a year.

Back 47

Statement of Cash Flows

Front 48

A summary of the changes in owner's equity that have occurred during a specific period of time, such as a month or a year

Back 48

Statement pf Owner's Equity

Front 49

A concept of accounting requiring that economic data be recorded in dollars.

Back 49

Unit of Measure Concept