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54 Cards in this Set

  • Front
  • Back

Account Form

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

Account Payable

The liability created by a purchase on account

Account Recievable

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

Accounting

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

Accounting Equation

Assets=Liabilities+Stockholders' Equity

Assets

The resources owned by a business.

Balance Sheet

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

Business

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

Business Entity Concept

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

Business Transaction

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

Capital stock

The portion of a corporation's stockholders' equity contributed by investors(owners) in exchange for shares of stocks.

Certified Public Accountant

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

Corporation

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

Cost Concept

A concept of accounting that records the amounts initially in the accounting records at their cost or purchase price.

Dividends

Distributions of a corporation's earnings to stockholders.

Earnings

The amount by which revenues exceed expenses.

Ethics

Moral principles that guide the conduct of individuals.

Expenses

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

Fees Earned

Revenue from providing services.

Financial Accounting

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.

Financial Accounting Standards Board(FASB)

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

Financial Statements

Financial reports that summarize the effects of events on a business.

Generally Accepted Accounting Principles (GAAP)

Guidelines for the preparation of financial statements.

General-Purpose Financial Statements

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

Income Statement

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

Interest Revenue

Money received for interest.

International Accounting Standards Board(IASB)

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

Liabilities

The rights of creditors that represent debts of the business.

Limited Liability Company(LLC)

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.

Management Accounting

The branch of accounting that uses both historical and estimated data in providing information that management uses in conducting daily operations, in planning future operations, and in developing overall business strategies.

Manufacturing Business

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

Matching Concept

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

erchandising Business

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

Net Income (Or Net Profit)

The amount by which revenues exceed expenses.

Net Loss

The amount by which expenses exceed revenues.

Objectivity Concept

A concept of accounting that requires the amounts recorded in the accounting records to be based on objective evidence.

Owner's Equity

The owner's right to the assets of the business for a proprietorship, partnership, or limited liability company.

Partnership

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

Prepaid Expenses

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

Private Accounting

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

Profit

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.

Propietorship

A business owned by one individual.

Public Accounting

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

Ratio of Liabilities to Stockholders' Equity

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

Rent Revenue

Money received for rent.

Retained Earnings

The stockholders' equity created fro business operations through revenue and expense transactions; net income retained in a corporation.

Retained Earnings Statement

A summary of the changes in the retained earnings in a corporation for a specific period of tie, such as a month or a year.

Revenue

Increases in stockholders' equity as a result of selling services or products to customers.

Sales

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

Securities and Exchange Commission (SEC)

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.

Service Business

A business providing services rather than products to customers.

Statement of Cash Flows

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

Stockholders' Equity

The stockholders' right to the assets of the business, represented by the balance of the capital stock and retained earnings accounts.

Unit of Measure Concept

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