Nvcc Acc211 Fund. Acctg Principles Ch.1 2007

Front 1

Accounting

Back 1

Info & measurement system that identifies, records, and communicates relevant information about a company's business activities.

Front 2

Accounting equation

Back 2

Assets = Liabilities + Equity

Front 3

Assets

Back 3

Resources that a business owns or controls

Front 4

Audit

Back 4

Analysis and report of an organization's accounting system, its records, and its reports using various tests.

Front 5

Balance Sheet

Back 5

Financial statement that lists types and dollar amounts of assets, liabilities, and equity at a specific date.

Front 6

Bookkeeping

Back 6

Part of accounting that involves recording transactions and events, either manually or electronically

Front 7

Principles of Accounting

Back 7

1. Objectivity
2. Cost
3. Going-Concern
4. Monetary Unit
5. Revenue Recognition
6. Business Entity

Front 8

Business entity principle

Back 8

Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.

Front 9

Common stock

Back 9

Corporation's basic ownership share; aka capital stock

Front 10

Corporation

Back 10

Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.

Front 11

Cost principle

Back 11

Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.

Front 12

Equity

Back 12

Owner's claim on the assets of a business; equals the residual interest in an entity's assets after deducting liabilities; also called net assets

Front 13

Ethics

Back 13

Codes of conduct by which actions are judged as right or wrong, fair or unfair, honest or dishonest.

Front 14

Events

Back 14

Happenings that both affect an organization's financial position and can be reliably measured.

Front 15

Expanded accounting equation

Back 15

Assets = Liabilities + Equity; Equity equals [Owner capital – Owner withdrawals + Revenues – Expenses] for a noncorporation; Equity equals [Contributed capital + Retained earnings + Revenues – Expenses] for a corporation where dividends are subtracted from retained earnings.