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48 Cards in this Set
- Front
- Back
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states that acquired assets and services should be recorded at their actual cost |
Cost principle |
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the main U.S accounting rule book |
GAAP |
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requires information to be complete, neutral, and free from material error |
Faithful representation |
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oversees the creation and governance of accounting standards in the United States |
FASB |
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assumes that items on the financial statements are recorded in a monetary unit |
Monetary unit assumptions |
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requires an organization to be a separate economic unit |
Economic entity assumption |
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assumes that items on the financial statements are recorded in a monetary unit |
Monetary unit assumption |
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assumes that an entity will remain in operation for the foreseeable future |
Going concern assumption |
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creates International Financial Reporting Standards |
IASB |
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owner is referred to as a proprietor |
Sole proprietorship |
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Asserts that accounting information should be complete, neutral, and free from material error |
Faithful representation |
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Has two or more owners (partners) |
Partnership |
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Set of global accounting guidelines formulated by the IASB |
IFRS |
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Type of entity that is designed to limit personal liability exposure of owners to entity's debts |
Corporation |
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An examination of a company's financial statements and records |
Audit |
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Holds that fair market value should not be used over actual costs |
Cost principle |
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Stands for Financial Accounting Standards Board |
FASB |
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Person or business lending money |
Creditors |
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US government agency that oversees the U.S financial markets |
SEC |
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the basic tool of accounting A=L+E |
Accounting equation |
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economic resource that is to be of benefit in future |
Asset |
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Reports on an entitys asset, liability, and oe |
Balance sheet |
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decreases in equity that occur in selling of good |
expense |
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reports on an entity rev, exp, and net income or loss |
income statement |
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debts that are owed to creditors |
liability |
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excess of total revenues over total expenses |
net income |
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excess of total expenses over total revenues |
net loss |
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increases in equity that occur in the course of selling goods or services |
revenue |
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reports on a business cash reciepts and cash payments during a period |
statement of cash flows |
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reports how the owners capital balance changed from the beginning to the end of the period |
statement of owners equity |
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customor - e i |
external |
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company manager e -i |
internal |
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Internal Revenue Service - e i |
External |
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lender - e i |
external |
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investor - e i |
external |
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controller - e i |
internal |
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cost accountant - e i |
interal |
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SEC - e i |
external |
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detailed record of all increases decreases that have occurred |
account |
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the recor holding all the accounts of a business, |
ledger |
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a joural entry that is characterized by having multiple debits. or credits |
compound journal entry |
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a record of transactions in date order |
journal |
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left side of t account |
debits |
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side of an account where increases are recorded |
normal balance |
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transferring amounts from the journal to the ledger |
Posting |
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right side of t account |
credit |
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a list of all accounts with their balances at a point in time |
trial balance |
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a list of accounts with their account numbers |
chart of accounts |
