Details

Title: Acc 201- Mary Wollen

Description: Chapter 1-4

Total Flash Cards: 9

Created: 02/09/2005 03:29:08

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Additional Accounting Flashcards

Cards in this set:

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