The branch of accounting that generates information for the internal decision makers of a business such as top executives.

The information system that measures business activities, processes that information into reports and financial statements and communicates the results to decision makers

Business with single owner

An association of two or more persons who co-own a business for a profit

A business owned by stockholders which is an entity and an artifical peson under the law.

Shareholder. One who owns stock in a company

Shares into which the owner's equity of a corporation is divided

GENERALLY ACCEPTED ACCOUNTING PRINCIPLES

GAAP

Accounting guidelines formulated by the Financial Accounting Standards Board that govern accounting practice.

Organization or section thereof that is a separate economic unit distinct from other organizations or persons

RELIABILITY PRINCIPLE

OBJECTIVITY PRINCIPLE.  Concept that requires that accounting records and statements should be based on most relaible data available.

Principle that assets and services should be recorded at their actual costs

Assumption that an entity will remain in operation for the foreseeable future

Assumption that purchasing power of the dollar is relatively stable so that the effects of inflation can be ignord in accounting records.

ASSETS = LIABILITIES + OWNERS' EQUITY

ASSET

Economic Resource expected to be a future benefit

Debt (economic obligation) payable to outside individual/organization

OWNERS' EQUITY

Claim that business owner's have to assets of their business. Also CAPITAL, STOCKHOLDER'S EQUITY, NET ASSETS

CASH

Money or any medium of exchange that bank will accpet at face value

Merchandise that a company sells to its customers

PROPERTY, PLANT, EQUIPMENT

Long lived assets (land, buildings, equipment) used in business operations. PLANT ASSETS

Liability backed by the reputation and credit standing of the debtor

Liability evidenced by a written promise to make a future payment.

A liability that is due one year after the date of the financial statement

Stockholder's ownership interest in the in the assets of their corporation

The amount of stockholder's equity that they have contributed to their corporation. CONTRIBUTED CAPITAL

The most common form of capital stock

The amount of stockholder equity that the corporation has earned through profitable operation but which it has not given back to stockholders