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Details Title: Acc 201- Mary Wollen Description: Chapter 1-4 Total Flash Cards: 9 Created: 02/09/2005 03:29:08	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term Accounting Definition Language of business Term Basic Accounting Process Definition -Idenitfy the event or transaction -Record event or transaction -Create a report to summarize info -Analyze and Interpret report Term Gaap (general accepted accounting principles) Definition Consists of: -FASB- creates accounting rules -SEC- enforces accounting rules Term Forms of Business Organizations (type of entity) Definition 1) sole proprietorship- one owner 2) partnership- two or more owners _Corporation- Legally separated from owners with limited liability (owner not held liable for corporation) Term Building Blocks of Accounting (6 types of accounts) Definition A- Assets-something you own L- Liability- something you owe SE- Stockholder's Equity- Common Stock, Retained Earnings R- Revenue- increase in equity E- Expense- decrease in equity D- Dividend- distribution to stockholders (choice not an obligation) Term FIRST- Basic Financial Statement Income Statement Definition Reports entity profit for a specific time - R(revenue)-E(expenses)= NI (net income) Term SECOND- Basic Financial Statement Statement of Retained Earnings Definition Report entity retained earnings for a specific period of time -BRE(beginning retained earnings) + NI (net income) - D (dividends)= ERE (end retained earnings) Term THIRD- Basic Financial Statement Balance Sheet Definition Report position of equity at a specific period of time ALWAYS HAS TO BALANCE A(assets)=L(liability)+ SE (stockholder's equity Term FOURTH- Basic Financial Statement Statement of Cash Flow Definition Reports various sources of cash during s specific point of time -Classifies cash inflows and outflows