Details Title: Accounting Ch. 1 Description: Accounting Exam Total Flash Cards: 42 Created: 06/14/2009 13:28:11		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 System that provides reports to stakeholders about the economic activities and condition of the business Term Financial Accounting Definition The recording and reporting of economic data and activities for a business Term Managerial Accounting Definition Uses both financial accounting and estimated data to aid management in running day to day operations and in planning future operations Term Private Accounting Definition Accountants employed by companies, government, and non-for-Profit entities Term Public Accounting Definition Accountant employed individually or within a public accounting firm in tax or audit services Term Certified Public Accountant (CPA) Definition Public accountants who have met the states requirments. They perform General accounting. Term Generally accepted accounting principles (GAAP) Definition Principles that make accounting uniform across companies Term Financial Accounting Standards Board (FASB) Definition The Authoritative body having the primary responsibility for developing accounting principles Term Business Entity Concept Definition Limits the economic data in the accounting system to data related directly to the activities of the business.  ( the business is viewed as an entity seperate from its owners, creditors, or other stakeholders.) Term Objectivity Concept Definition Requires that the accounting records and reports be based upon objective evidence.  Only the final price should be in report. Term Unit of Measure Concept Definition Requires that economic data be recorded in dollars. Term Assets Definition Resources owned by a business.  Cash, land, buildings, equipment, etc. Term Liabilities Definition The rights of the creditors represent debts of the business. Term Assets= Definition Liabilities + Owners Equity Term Owners Equity Definition the rights of the owners Term Accounting Equation Definition Assets = Liabilities + owners equity   Owners equity = Assets - Liabilities Term Business Transaction Definition a business paying somebody or being payed Term Capital Stock Definition Stock Issued to owners in a corporation Term Stockholders' Equity Definition The owners equity in a corporation Term Rent Revenue Definition Money Recieved for Rent Term Interest Revenue Definition Money recieved for interest Term Expenses Definition The money used in earning revenue Term Dividends Definition Distributions of earnings to stockholders Term Financial statement order Definition 1. Income Statement 2. Retained earnings statement 3. Balance Sheet 4. Statement of Cash flows Term Income Statement Definition a Summery of the revenue and expenses for a specific period of time, such as a month or year Term Retained Earnings Statement Definition A summery of the changes in the earnings retained in the coporation for a specific period of time, such a month or year Term Balance Sheet Definition A list of the assets, liabilities, and owners equity as of a specific date, usually at the close of the last day of a month or year. Term Statement of Cash Flows Definition A summary of the cash receipts and cash payments for a specific period of time, such as a month or a year. Term Matching Concept Definition Income statement process that matches the expenses with the revenue over the expenses incurred Term Net Income Definition The excess revenue over expenses Term Net Loss Definition If the expenses exceed the revenue Term Account Form Definition Assets on the left side and Liabilities and owners equity on right side. Term Accounts Payable Definition When something is purchased on an account (tab) it is a liability listed under accounts payable Term Accounts Receivable Definition an assett in which the revenue is earned as if cash had been received Term Interest Revenue Definition Revenue earned from interest Term Sales Definition Merchandise Term Fees Earned Definition Revenue from providing services Term Service Business Definition Provide Services rather than products to customers. EX - Disney, Hotels, Radio Term Merchandising Businesses Definition Sell Products they purchase from other businesses to customers. EX- Wal-Mart Term Proprietorship Definition Owned by one individual and comprise 70% of business organizations in US. Cost of Organizing low, limited to financial resources of owner, Small Businesses Term Partnership Definition Business owned by 2 or more individuals.  Combine skills of more than one person. Term Corporation Definition Organized under state or federal statutes as a seperate legal taxable entitiy.