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Definition
| An information system for the measurement and reporting of the transformation of resources into goods and services and the sale or transfer of these goods and services to customers |
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| A detailed, systematic investigation of a company's accounting records and procedures of the purpose of determining the reliability of financial reports |
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| Organizations that sell their goods and services to make a profit |
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| Legal agreements for the exchange of resources and services |
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| A legal entity with the right to enter into contracts; the right to own,buy, and sell property; and the right to sell stock |
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| A person or organization who loans financial resources to an organization |
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| An organization that is successful in providing goods and services demanded by customers |
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| An organization that keeps the costs of resources consumed in providing goods and services low relative to the selling prices of these goods and services |
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| The process of preparing, reporting, and interpreting accounting information that is provided to external decison makers |
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| Generally Accepted Accounting Principles |
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Definition
| Standards developed by professional accounting organizations to identify appropriate procedures |
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| Governmental and nonprofit organizations |
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| Organizations that provide goods or, more typically, services without the intent of making a profit |
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| Facts, ideas, and concepts that help us understand the world |
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Definition
| The process of preparing, reporting, and interpreting information for use by an organizations' internal decision makers |
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| Organizations that produce goods that they sell to consumers, to merchandising companies, or to other manufacturing companies |
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| Any location or process that permits resources to be bought and solt |
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| Organizations that sell to consumers goods that are produced by other companies |
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| The condition that exists when agents have superior information to principals and are able to make decisions that favor their own interest over those of the principals |
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| A legal right that permits a partner to enter into contracts and agreements that are binding on all members of a partnership |
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Definition
| A group of people who work together to develop,produce, and/or distribute goods or services |
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| A business owned by two or more persons, with no legal identity distinct from that of the owners |
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Definition
| The difference between the price a seller receives for goods or services and the total cost to the seller of all resources consumed in developing, producing, and selling those goods or services during a particular period |
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| A business owned by one person, with no legal identity distinct from that of the owner |
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| same as merchandising companies |
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| the amount of profits earned by a business that could be paid to owners |
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| Uncertainty about an outcome |
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| organizations that sell services rather than goods |
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| those who have an economic interest in an organization and those who are affected by its activity |
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| a certificate of ownership that represents an equal share in the ownership of a corporation |
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| a record of increases and decreases in the dollar amount associated with a specific resource or activity |
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| resource controlled by a business |
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| a financial statement that identifies a company's assets and claims to those assets by creditors and owners at a specific date |
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Definition
| events that occur when a business acquires, uses, or sells resources or claims to those resources |
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Term
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Definition
| the financial resources in the form of coins and currency, bank deposits, and short-term investments that can be converted easily into currency that can be used to pay for resources and obligations of a company |
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Definition
| an owners' equity account that identifies amounts contributed to a company by its owners; the direct investment made by stockholders in a corporation |
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Definition
| an expense that identifies the cost to the company of teh goods transferred to customers |
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Term
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Definition
| decrease in elements on the left side of the accounting equation and increases in elements on the right side of the equation |
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Term
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Definition
| increase in elements on the left side of the accounting equation and decrease in elements on the right side of the equation |
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Definition
| the amount of resources consumed in the process of acquiring and selling goods and services |
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Definition
| reports that summarize the results of a company's accounting transactions for a fiscal period |
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| events that occur when owners or creditors provide resources to a company or when a company transfers resources tow owners or creditors |
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| any time period for which a company wants to report its financial activities |
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| a financial statement that reports revenues and expenses for a fiscal period as a means of determining how well a company has performed in creating profit for its owners |
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| the cost of borrowing that is paid to creditors in addition to the repayment of the principal |
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| activities involving the acquisition or disposal of long-term resources used by a business |
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Definition
| claims of a creditor to a company's resources |
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Definition
| an asset account that identifies the cost of goods a company has purchased that are available for sale to customers |
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Definition
| the amount of profit earned by a business during a fiscal period |
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Definition
| a liability account used to identify amounts a company owes to creditors with whom a formal agreement, or note, has been signed |
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Definition
| activities necessary to acquire and sell goods and services |
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| a contribution by owners to a business, along with any profits that are kept in the business |
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| the amount a company borrows |
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Definition
| a subcategory of owners' equity that are the accumulated profits of a business that have been reinvested in the business |
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Definition
| the ratio of net income to total assets; net income divided by total assets |
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Definition
| the amount a company expects to receive when it sells goods or services |
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Term
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Definition
| revenue that identifies the amount a company earns from selling its products |
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Definition
| a financial statement that reports events that affected a company's cash account during a fiscal period |
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Term
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Definition
| descriptions of business activities or events that are measured in dollar values and recorded in accounts |
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Term
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Definition
| the process of recording, summarizing, and reporting accounting information |
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Definition
| a liability account that identifies and obligation to pay suppliers in the near future |
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Definition
| an asset account that increases when goods are sold on credit |
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Term
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Definition
| a form of accounting in which revenues are recognized when they are earned and expenses are recognized when they are incurred |
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Term
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Definition
| expenses recognized prior to the payment of cash |
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Term
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Definition
| liabilites that record the obligation to make payments for expenses that have been incurred or for assets that have been acquired but for which payment has not been made |
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Term
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Definition
| revenue recognized prior to the receipt of cash |
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Definition
| a contr-asset account used to identify the total amount of depreciation recorded for a company's assets |
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Term
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Definition
| a transaction recorded in the accounting system to ensure the correct account balances are reported for a particular fiscal period |
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Term
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Definition
| the allocation of the cost of long-term intangible assets to the fiscal periods that benefit from their use |
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Definition
| the relationship among financial statements among which the numbers on one statement explain numbers on other statements |
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Term
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Definition
| transactions that reset the balances of each revenue and expense account to zero and transfer these balances to retained earnings |
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Term
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Definition
| the stock that conveys primary ownership rights in a corporation |
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Term
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Definition
| the change in a company's owners' equity during a period that is the result of all non-owner transactions and activities |
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| consolidated financial statements |
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Definition
| a report that includes the activities of the parent and its subsidiaries as though they were one company |
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Term
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Definition
| an account that offsets another account |
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Definition
| the cost of material, labor, and other resources consumed directly in producing services sold during a period |
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Term
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Definition
| cash or other resources that management expects to convert to cash or consume during the next fiscal year |
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Term
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Definition
| those obligatoins that management expects to fulfill during the next fiscal year |
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Term
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Definition
| current assets divided by current liabilities |
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Term
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Definition
| expense recognized after the payment of cash |
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Term
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Definition
| revenue recognized after cash has been received |
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Term
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Definition
| the process of allocating the cost of natural resources to expenses in the periods that benefit from their use |
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Term
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Definition
| the allocation of the cost of assets to the fiscal periods that benefit form the assets' use |
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Term
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Definition
| distributions of cash or stock by a corporation to its stockholders |
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Term
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Definition
| a measure of the earnings performance of each share of common stock during each fiscal period |
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Term
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Definition
| long term, tangible resources |
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Term
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Definition
| the primary ledger a company uses to record its account balances; contains records for each control account |
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Term
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Definition
| the excess of the price paid for a company over the fair market value of the net assets of the acquired company |
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Term
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Definition
| the difference between the selling price of goods or services sold to customers during a period and the cost of the goods or sevices sold |
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Term
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Definition
| the purchase or exchange price of an asset or liability at the time it is acquired or incurred |
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Term
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Definition
| long term legal rights resulting from the ownership of patents, copyrights, trademarks, and similar items |
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Term
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Definition
| a chronological record of a company's transaction |
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Definition
| a file in which each of a company's accounts and the balances of those accounts are maintained |
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Term
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Definition
| resources that can be converted to cash in a relatively short period |
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Term
| long term intangible assets |
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Definition
| assets that provide benefits to the company fore more than one fiscal period |
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Term
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Definition
| occur when a company lends money to or purchases stock issued by other organizations and does not intend to sell those investments in the coming fiscal year |
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Term
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Definition
| obligations not classified as current liabilities |
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Term
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Definition
| an accounting concept which requires companies to recognize the expenses used to generate revenue in the same accounting period in which the revnues are recognized |
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Term
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Definition
| costs of resources consumed as part of operating activities during a fiscal period and that are not directly associated with specific goods or services |
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Definition
| the excess of gross profit over operating expenses |
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Definition
| the controlling corporation |
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Term
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Definition
| long term, tangible resources |
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Term
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Definition
| the process of transferring transactions to specific accounts in a company's ledger |
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Definition
| an asset account that identifies a resource that has been paid for but not used |
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Term
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Definition
| long term, tangible assets that are used in a company's operations |
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| statement of stockholders' equity |
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Definition
| a financial statement that reports changes in a corporation's owners' equity for a fiscal period |
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Definition
| the companies owned or controlled by the parent corporation |
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Definition
| the amount earned from selling goods or services |
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Definition
| a liability account that results when a company receives cash from a customer for goods or services to be provided in for the future |
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Definition
| the difference between current assets and current liabilities |
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Definition
| that ratio of current assets to current liabilities |
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