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;
10 Cards in this Set
- Front
- Back
|
accounting |
the action or process of keeping financial accounts.
|
|
|
accounting system
|
'Accounting Information System - AIS' The collection, storage and processing of financial and accounting data that is used by decision makers. An accounting information system is generally a computer-based method for tracking accounting activity in conjunction with information technology resources.
|
|
|
accounting records
|
Accounting records are key sources of information and evidence used to prepare, verify and/or audit the financial statements. They also include documentation to prove asset ownership for creation of liabilities and proof of monetary and non monetary transactions.
|
|
|
financial statements
|
A financial statement (or financial report) is a formal record of the financial activities and position of a business, person, or other entity |
|
|
service business |
Business services is a general term that describes work that supports a business but does not produce a tangible commodity. Information technology (IT) is an important business service that supports many other business services such as procurement, shipping and finance
|
|
|
propietorship
|
Definition: A business that legally has no separate existence from its owner. Income and losses are taxed on the individual's personal income tax return. . The sole proprietorship is the simplest business form under which one can operate a business. The sole proprietorship is not a legal entity
|
|
|
asset
|
property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies
|
|
|
liability
|
the state of being responsible for something, especially by law
|
|
|
owner equity
|
Owner's equity represents the owner's investment in the business minus the owner's draws or withdrawals from the business plus the net income (or minus the net loss) since the business began. Mathematically, the amount of owner's equity is the amount of assets minus the amount of liabilities
|
|
|
accounting equation
|
Thus, the accounting equation is: Assets = Liabilities + Shareholder Equity. The balance sheet is a complex display of this equation, showing that the total assets of a company are equal to the total of liabilities and shareholder equity
|
