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Definition
| planning, recording, analyzing, and interpreting financial information |
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| a planned process for providing financial information that will be useful to management |
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| organized summaries of a business's financial activities |
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| financial reports that summarize the financial condition and operations of a business |
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| a business that performs an activity for a fee |
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| a business owned by a person |
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Definition
| anything of value that is owned |
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Definition
| financial rights to the assets of a business |
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| an amount owed by a business |
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Definition
| the amount remaining after the value of all it's liabilities is subtracted from the balue of all assets |
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Definition
| an equation showing the relationship among assets, liabilities, and owner's equity. |
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| the principles of right and wrong that guide an individual in making decisions |
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Definition
| the use of ethics in making business decisions |
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Definition
| a business activity that changes assets, liabilities, or owner's equity. |
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| a record summarizing all the information pertaining to a single item in the accounting equation. |
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| the name given to an account. |
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| the account used to summarize the owner's equity in a business |
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| an increase in owner's equity resulting from the operation of a business. |
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Definition
| a sale for which cash will be reciebed at a later date |
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Definition
| a decrease in owner's equity resulting from the operation of a business |
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Definition
| assets taken out of a business for the owner's personal use. |
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Term
| accounting is the language of business. true or false? |
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Definition
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| keeping personal and business records separate is an application of the business entity concept. true or false? |
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Definition
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| assets such as cash and supplies have value because they can be used to acquire other assets or be used to operate a business. true or false? |
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Definition
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| the relationship among assets, liabilities, and owner's equity can be written as an equation. true or false? |
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Definition
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Term
| the accounting equation does not have to be in balance to be correct. true or false? |
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| the sum of the assets and liabilities of a business always equals the investment of the business owner. true or false? |
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Definition
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| recording business costs in terms of hours required to complete projects is an application of the unit of measurement concept.true or false? |
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Definition
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| the capital account is an owner's equity account. true or false? |
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Definition
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| if two amounts are recorded on the same side of the accounting equation, the equation will no longer be in balance. true or false? |
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| when a company pays insurance premiums in advance to an insurer, it records the payment as a liability because the insurer owes future coverage. true or false? |
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Definition
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| when items are bought and paid for later this is referred to as buying on account. true or false? |
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Definition
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| when cash is paid on account, a liability is increased. true or false? |
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Definition
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| when cash is received from a sale, the total amount of both assets and owner's equity is increased. true or false? |
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Definition
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| a sale for which cash will be received at a later date is called a charge sale. true or false? |
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Definition
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| the accounting concept realization of revenue is applied when revenue is recorded at the time goods or services are sold. true or false? |
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Definition
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| when cash is paid for expenses, the business has more equity. true or false? |
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Definition
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| when a company receives cash from a customer for a prior sale, the transaction increases the cash account balance and increases the accounts receivable balance. true or false? |
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Definition
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| a withdrawal decreases owner's equity. true or false? |
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Definition
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