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33 Cards in this Set

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Account
A seperate record used to summerize changes in each asset, liability, and owner's equity of a business.
Accounts Payable
An unwritten promise to pay a supplier for assets purchased or services received.
Accounts Receivable
An amount owed to a business by its customers as a result of the sale of goods or services.
Account Title
Provides a description of the particular type of asset, liability, owner's equity, revenue, or expense.
Accounting Equation
The accounting equation consists of three basic accounting elements: assets=liabilities+ owner's equity.
Accounting Period Concept
The concept that income determination can be made on a periodic basis.
Asset
An item that is owned by a business and will provide future benifits.
Balance Sheet
Reports assets, liabilities, and owner's equity on a specific date. It is called a balance sheet because it confirms that the accounting equation is in balance.
Business entity
An individual, association, or organization that engages in economic activities and controls specific economic resources.
Business Entity Concept
The concept that nonbusiness assets and liabilities are not included in the business entity's accounting records.
Business Transaction
An economic event that has a direct impact on the business.
Capital
Another term for owner's equity, the amount by which the business assets exceed the business liabilities.
Drawing
Withdrawals that reduce owner's equity as a result of the owner taking cash or other assets out of the business for personal use.
Expenses
The decrease in assets (or increase of liabilities) as a result of efforts to produce revenues.
Fiscal Year
Any accounting period of twelve months' duration.
Income Statement
Reports the profitability of business operationsfor a specific period of time.
Input
Business transactions provide the necessary input for the accounting information system.
Liability
Something owed to another business entity.
Liquidity
A measure of the ease with which an asset will be converted to cash.
Net Income
The excess of total revenues over total expenses for the period.
Net Loss
The excess of total expenses over total revenues for the period.
Net Worth
Another term for owner's equity, the amount by which the business assets exceed the business liabilities.
Notes Payable
A formal written promise to pay a supplier of lender a specified sum of money at a definite future time.
Operating Statement
Another name for the income statement, which reports the profitablity of business operations for a specific period of time.
Output
the financial statements are the output of the accounting information system.
Owner's Equity
The amount by which the business assets exceed the business liabilities.
Processing
Reconizing te effect of transactions on the assets, liabilities, owner's equity, revenues, and expense of a business.
Profit and Loss Statement
Another name for the income statement, which reports the profitability of a business operations for a specific period of time.
Revenues
The amount a business charges customers for products sold or services preformed.
Statement of Financial Condition
Another name for the balance sheet, which reports assets, liabilities,and owner's equity on a specific date.
Statement of Financial Position
Another name for the balance sheet, which reports assets, liabilities, and owner's equity on a specific date.
Statement of Owner's Equity
Reports beginning capital plus net income less withdrawals to compute ending capital.
Withdrawals
Reduce owner's equity as a result of the owner taking cash or other assets out of the business for personal use.