Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key


Play button


Play button




Click to flip

30 Cards in this Set

  • Front
  • Back
records used for classifying and summarizing transaction data; subclassifications of financial statement elements
service based profession that provides reliable and relevant financial information useful in making decisions
expression of the relationship between the assets and claims of those assets
accounting equation
economic occurrence that causes changes in an enterprise's assets, liabilities, or equity
accounting event
span of time covered by the financial statements, normally one year, but may be a quarter, a month or some other time span.
accounting period
document in which an organization provides information to stockholders, usually on an annual basis
annual report
a term used to describe interrelationships among the financial statements
economic resources used by a business to produce revenue
transaction that increases an asset and a claim on assets; three types of asset source transactions are equity, liabilities,and revenues
asset source transaction
statement that lists the assets of a business and the corresponding claims on those assets
balance sheet
owner's and creditor's interests in a business's assets
a set of guidelines established by the american institute of certified public accountants to promote high ethical conduct among its members
code of professional conduct
basic class of corporate stock that carries no preferences as to claims on assets or dividends; certificates that evidence ownership in a company
common stock
individuals or institutions that have loaned goods or services to a business
transfer of wealth from a business to its owners
method of keeping records that provides a system of checks and balances by recording transactions in a dual format
double entry bookkeeping
the difference between revenues and expences
primary components of financial statements including assets, liabilities, equity, contributions, revenue, expenses, distributions, and net income.
portion of assets remaining after the creditors' claims have been satisfied
economic sacrifices that are incurred in the process of generating revenue
field of accounting designed to meet the information needs of external users of business information.
financial accounting
primary means of communicating the financial information of an organization to the external users. income statement, statement of changes in equity, balance sheet, statement of cash flows
financial statements
cash inflows and outflows from transactions with investors and creditors. These cash flows include cash receipts from the issue of stock, borrowing activities, and cash disbursements associated with dividends.
financing activities
complete set of accounts used in accounting systems
general ledger
actual price paid for an asset when it was purchased
historical cost concept
arrangement of a set of financial statements horizontally across a sheet of paper
horizontal statements model
added value created in transforming resource into more desirable states
statement that measure the difference between the asset increases and the asset decreases associated with running a business.
income statement
fee paid for the use of borrowed funds
a company's policies and procedures designed to reduce the opportunity for fraud and to provide reasonable assurance that its objectives will be accomplished.
internal controls