Details Title: ACC Vocab Description: Ch. 1-2 Total Flash Cards: 32 Created: 02/09/2009 20:32:58		New Users: To study from this flashcard set, or to create your own your own study flash cards, REGISTER HERE. Existing Users: CLICK HERE. Additional Accounting Flashcards
Cards in this set: Term Accounting Definition information and measurement system that identifies, records, and communicates relevant, reliable, and comparable info about an org's business activities Term Record Keeping Definition (bookkeeping) recording of transactions and events, either manually or electronically Term External Users Definition they are not directly involved in running the org sharholders, lenders, suppliers, consumers, etc Term Internal Users Definition they are directly involved in managing and operating an org   Term Ethics Definition beliefs that distinguish right from wrong Term Generally Accepted Accounting Principles Definition (GAAP) concepts and rules that make info in financial statements relevant, reliable, and comparable Term Matching Principle Definition prescribes that a company must record its expenses incurred to generate the revenue reported Term Cost Principle Definition accounting info is based on actual cost Term Going-concern Principle Definition accounting info reflects a presumption that the business will continue operating instead of being closed or sold Term Monetary Unit Principle Definition express transactions and events in monetary, or money, units Term Revenue Recognition Principle Definition provides guidance on when a company must recognize revenue Term Business Entity Principle Definition a business is accounted for separately from other business entities, including its owner Term Full Disclosure Principle Definition requires a company to report the details behind financial statements that would impact users' decisions Term Time Period Principle Definition presumes that the life of a company can be divided into time periods, such as months and years, and that useful reports can  be prepared for those periods Term Asset Definition resource with future benefits that are owned or controlled by a company Term Liability Definition what a company owes its nonowners (creditors) in future payments, products, or services Term Equity Definition (owner's capital) claim of its owner(s) Term Dividend Definition distribution to stockholders of assets Term Revenue Definition increase retained earnings and are te assetts earned from a company's earnigs activities Term Expense Definition decrease retained earnings and are the cost of assets or services used to earn revenues Term Net Income Definition occurs when revenues exceed expenses Term Source Document Definition identify and describe transactions and events entering the accounting process Term Account Definition record of increases and decreases in a specific asset, liability, equity, revenue, or expense item Term General Ledger Definition record containing all accounts used by a company Term Chart of Accounts Definition list of all accounts a company uses and includes an identification number assigned to each account Term T-Account Definition represents a ledger account and is a tool used to understand the effects of one or more transactions Term Double-Entry Accounting Definition requires that each transaction affect, and be recorded in, at least two accounts Term General Journal Definition gives a complete record of each transaction in one place; also shows the credits/debits of each transaction Term Posting Definition process of transferring journal entry info to ledger Term Trial Balance Definition list of accounts and their balances at a point in time Term Unearned Revenue Definition a liability that is settled in the future when a cocmpany delivers its products or services Term Prepaid Assets Definition asset that reprents prepayments of future expenses