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11 Cards in this Set
- Front
- Back
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account payable
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a liability backed by the general reputation and credit standing of the debtor
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accounting
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the information system that measures business activities, processes that information into reports and financial statements, and communicates the results to decision makers
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accounting equation
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the most basic tool of accounting: assets = liabilities + owners equity
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assets
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an economic resource that is expected to be of benefit in the future
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balance sheet
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list of an entity's assets, liabilities, and owners' equity as of a specific date. Also called the Statement of Financial Position.
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board of directors
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group elected by the stockholders to set policy for a corporation and to appoint its officers
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capital
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another name for the owners' equity of a business
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cash
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money and any medium of exchange that a bank accepts at face value
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common stock
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the most basic form of capital stock
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corporation
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a business owned by stockholders. a corporation is a legal entity, an "artificial person" in the eyes of the law.
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cost principle
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principle that states that assets and services should be recorded at their actual cost
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