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Definition
| information and measurement system that identifies, records, and communicates relevant, reliable, and comparable info about an org's business activities |
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(bookkeeping) recording of transactions and events, either manually or electronically |
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they are not directly involved in running the org sharholders, lenders, suppliers, consumers, etc |
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they are directly involved in managing and operating an org |
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| beliefs that distinguish right from wrong |
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| Generally Accepted Accounting Principles |
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Definition
| (GAAP) concepts and rules that make info in financial statements relevant, reliable, and comparable |
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| prescribes that a company must record its expenses incurred to generate the revenue reported |
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| accounting info is based on actual cost |
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| accounting info reflects a presumption that the business will continue operating instead of being closed or sold |
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express transactions and events in monetary, or money, units |
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| Revenue Recognition Principle |
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Definition
| provides guidance on when a company must recognize revenue |
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| Business Entity Principle |
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| a business is accounted for separately from other business entities, including its owner |
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| Full Disclosure Principle |
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Definition
| requires a company to report the details behind financial statements that would impact users' decisions |
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| presumes that the life of a company can be divided into time periods, such as months and years, and that useful reports can be prepared for those periods |
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| resource with future benefits that are owned or controlled by a company |
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| what a company owes its nonowners (creditors) in future payments, products, or services |
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(owner's capital) claim of its owner(s) |
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| distribution to stockholders of assets |
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Definition
| increase retained earnings and are te assetts earned from a company's earnigs activities |
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Term
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| decrease retained earnings and are the cost of assets or services used to earn revenues |
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| occurs when revenues exceed expenses |
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| identify and describe transactions and events entering the accounting process |
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| record of increases and decreases in a specific asset, liability, equity, revenue, or expense item |
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| record containing all accounts used by a company |
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| list of all accounts a company uses and includes an identification number assigned to each account |
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Definition
| represents a ledger account and is a tool used to understand the effects of one or more transactions |
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Definition
| requires that each transaction affect, and be recorded in, at least two accounts |
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Definition
| gives a complete record of each transaction in one place; also shows the credits/debits of each transaction |
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| process of transferring journal entry info to ledger |
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| list of accounts and their balances at a point in time |
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| a liability that is settled in the future when a cocmpany delivers its products or services |
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Definition
| asset that reprents prepayments of future expenses |
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