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Chapter 1
Brookdale ACCT-101 Ch1
53
Accounting
Undergraduate 1
02/20/2011

Additional Accounting Flashcards

 


 

Cards

Term
account payable
Definition
The liability created by a purchase on account
Term
account form
Definition
The form of balance sheet that resembles the basic format of the accounting equation, with assets on the left side and Liabilities and Stockholders’ Equity sections on the right side
Term
account receivable
Definition
A claim against the customer created by selling merchandise or services on credit
Term
accounting
Definition
An information system that provides reports to stakeholders about the economic activities and condition of a business
Term
accounting equation
Definition
Assets = Liabilities + Owner’s Equity
Term
assets
Definition
The resources owned by a business
Term
balance sheet
Definition
A list of the assets, liabilities, and stockholders’ equity as of a specific date, usually at the close of the last day of a month or a year
Term
business
Definition
An organization in which basic resources (inputs), such as materials and labor, are assembled and processed to provide goods or services (outputs) to customers
Term
business entity concept
Definition
A concept of accounting that limits the economic data in the accounting system to data related directly to the activities of the business
Term
business transaction
Definition
An economic event or condition that directly changes an entity’s financial condition or directly affects its results of operations
Term
capital stock
Definition
The portion of a corporation’s stockholders’ equity contributed by investors (owners) in exchange for shares of stock
Term
Certified Public Accountant (CPA)
Definition
Public accountants who have met a state’s education, experience, and examination requirements
Term
corporation
Definition
A business organized under state or federal statutes as a separate legal entity
Term
cost concept
Definition
A concept of accounting that determines the amount initially entered into the accounting records for purchases
Term
dividends
Definition
Distribution of a corporation’s earning to stockholders
Term
ethics
Definition
Moral principles that guide the conduct of individuals
Term
expenses
Definition
Assets used up or services consumed in the process of generating revenues
Term
fees earned
Definition
Revenue from providing services
Term
financial accounting
Definition
The branch of accounting that is concerned with recording transactions using generally accepted accounting principles (GAAP) for a business or other economic unit and with a periodic preparation of various statements from such records
Term
Financial Accounting Standards Board (FASB)
Definition
The authoritative body that has the primary responsibility for developing accounting principles
Term
financial statements
Definition
Financial reports that summarize the effects of events on a business
Term
general-purpose financial statements
Definition
A type of financial accounting report that is distributed to external users. The term “general purpose” refers to the wide range of decision-making needs that the reports are designed to serve
Term
generally accepted accounting principles (GAAP)
Definition
Generally accepted guidelines for the preparation of financial statements
Term
income statement
Definition
A summary of the revenue and expenses for a specific period of time, such as a month or a year
Term
interest revenue
Definition
Money received for interest
Term
International Accounting Standards Board (IASB)
Definition
An organization that issues International Financial Reporting Standards for many countries outside the United States
Term
liabilities
Definition
The rights of creditors that represent debts of the business
Term
limited liability company (LLC)
Definition
A business form consisting of one or more persons or entities filing an operating agreement with a state to conduct business with limited liability to the owners, yet treated as a partnership for tax purposes
Term
management (or managerial) accounting
Definition
The branch of accounting that uses both historical and estimated data in providing information that management uses in conducting daily operations, in planning future operations, and in developing overall business strategies
Term
manufacturing business
Definition
A type of business that changes basic inputs into products that are sold to individual customers
Term
matching concept (or matching principle)
Definition
A concept of accounting in which expenses are matched with the revenue generated during a period by those expenses
Term
merchandising business
Definition
A type of business that purchases products from other businesses and sells them to customers
Term
net income or net profit
Definition
The amount by which revenues exceed expenses
Term
net loss
Definition
The amount by which expenses exceed revenues
Term
objectivity concept
Definition
A concept of accounting that requires accounting records and the data reported in financial statements to be based on objective evidence
Term
owner’s equity
Definition
The owner’s right to the assets of the business
Term
partnership
Definition
An unincorporated business form consisting of two or more persons conducting business as co-owners for profit
Term
prepaid expenses
Definition
Items such as supplies that will be used in the business in the future
Term
private accounting
Definition
The field of accounting whereby accountants are employed by a business firm or a not-for-profit organization
Term
profit
Definition
The difference between the amounts received from customers for goods or services provided and the amounts paid for the inputs used to provide the goods or services
Term
proprietorship
Definition
A business owned by one individual
Term
public accounting
Definition
The field of accounting where accountants and their staff provide services on a fee basis
Term
rent revenue
Definition
Money received for rent
Term
retained earnings
Definition
Net income retained in a corporation
Term
retained earnings statement
Definition
A summary of the changes in the retained earnings in a corporation for a specific period of time, such as a month or a year
Term
revenue
Definition
Increase in owner’s equity as a result of selling services or products to customers
Term
sales
Definition
The total amount charged customers for merchandise sold, including cash sales and sales on account
Term
Securities and Exchange Commission (SEC)
Definition
An agency of the U.S. government that has authority over the accounting and financial disclosures for companies whose shares of ownership (stock) are traded and sold to the public
Term
service business
Definition
A business providing services rather than products to customers
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
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
stockholders’ equity
Definition
The owners’ equity in a corporation
Term
unit of measure concept
Definition
A concept of accounting requiring that economic data be recorded in dollars
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