Term
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Definition
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Term
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Definition
| assets = liabilities + owners equity |
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Term
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Definition
| contributed capital and retained earnings |
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Term
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Definition
| own, future economic benefit, from past transaction |
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Term
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Definition
| owe, satisfied with asset, from past transaction |
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Term
| Financial Statement (3 sheets) |
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Definition
| balance sheet, income statement, statement of cash flow |
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Term
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Definition
| seller/supplier - goods/services - buyer/customer - cash |
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Term
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Definition
| revenue, expenses - for period of time |
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Term
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Definition
| assets, liabilities, owners equity - specific point in time |
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Term
| Statement of Cash Flow and what activities are shown |
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Definition
cash in, cash out - for period of time
operating, financing, investing |
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Term
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Definition
| assets, liabilities, owners equity, revenue, expenses |
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Term
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Definition
| increase in assets from the exchange of goods and services with customers |
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Term
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Definition
| decrease of assets from exchange of goods and services with suppliers |
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Term
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Definition
| net income/number of shares |
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Term
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Definition
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Term
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Definition
| current assets - current liabilities |
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Term
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Definition
| current assets/current liabilities |
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Term
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Definition
| list of all accounts and ending balances |
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Term
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Definition
1. Know Stuff
2. Know when to use stuff
3. Use stuff
4. Defend your solution |
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Term
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Definition
| Not equal to salary expense |
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Term
| Multi-Step vs Single-Step IS |
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Definition
| to provide most useful information to help users make better decisions |
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Term
| Classified vs. Unclassified Balance Sheet |
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Definition
| to provide most useful information to help users make better decisions |
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Term
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Definition
| current assets, current liabilities - think of short term w customers and suppliers |
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Term
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Definition
| non current liabilities, contributed capital, retained earnings - think of long term liab and all of OE |
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Term
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Definition
| non current assets (property, plant, equipment) - think of long term assets |
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Term
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Definition
Throughout period, we show the effect of each transaction on acct. eq.
At end of period, we find ending balances, prepare trial balance, and prepare financial statements |
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Term
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Definition
| to provide financial information to make decisions |
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Term
| Difference between "preparing" and "using" Accounting |
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Definition
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Term
| Why is it "the language of business" |
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Definition
| method of communicating business information to make decisions |
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Term
| Steps in the Accounting Process |
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Definition
1. Show effect of trans on acct eq
2. Prepare TB of ending balances
3. Prepare financial statements |
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Term
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Definition
| all NI ever - all dividends |
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Term
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Definition
| more reliable (how much you paid) |
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Term
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Definition
| more relevant than HC (how much to replace it) |
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Term
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Definition
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Term
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Definition
| recognize revenue and expenses when the goods/services are exchanged |
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Term
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Definition
| short term measure of financial position |
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Term
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Definition
| Long term measure of financial position |
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Term
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Definition
| when we recognize all cash collected as revenue and all cash spent as expenses |
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Term
| Qualitative Characteristics |
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Definition
| consistent, comparable, relevant, reliable |
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Term
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Definition
| the allocation of the cost of an asset over its useful life |
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