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Definition
| the information system that identifies, records, and communicates the economic events of an organization to interested users |
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Definition
| Resources a business owns |
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Definition
| a financial statement that reports the assets, liabilities, and owner's equity at a specific date |
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| basic accounting equation |
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Definition
| assets = liabilities + owner's equity |
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Definition
| a part of accounting that involves only the recording of economic events |
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Definition
| a business organized as a separate legal entity under state corporation law, having ownership divided into transferable shares of stock |
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Definition
| an accounting principle that states that companies should record assets at their cost |
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Definition
| withrdrawal of cash or other assets from an unincorporated business for the personal use of the owner(s) |
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| Economic entity assumption |
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Definition
| an assumption that requires that the activities of the be kept separate and distinct from the activities of its owner and all other economic entities |
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Definition
| The standards of conduct by which one's actions are judged as right or wrong, honest or dishonest, fair or not fair. |
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Term
| Expanded accounting equation |
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Definition
| Assets = Liabilities + Owner's Capital - Owner's Drawings + Revenues - Expenses |
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Definition
| The cost of assets consumed or services used in the process of earning revenue |
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Definition
| the field of accounting that provides economic and financial information for investors, creditors and other external users |
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Term
| Financial Accounting Standards Board (FASB) |
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Definition
| A private organization that establishes generally accepted accounting principles (GAAP) |
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Term
| Generally accepted accounting principles (GAAP) |
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Definition
| Common standards that indicate how to report economic events |
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Definition
| A financial statement that presents the revenues and expenses and resulting net income or net loss of a company for a specific period of time |
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Term
| International Accounting Standards Board (IASB) |
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Definition
| An accounting standard-setting body that issues standards adopted by many countries outside the United States |
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Definition
| The assets an owner puts into the business |
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Definition
| Creditor claims on total assets |
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Definition
| The field of accounting that provides internal reports to help users make decisions about their companies |
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Definition
| An assumption stating that companies include in the accounting records only transaction data that can be expresed in terms of money |
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Term
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Definition
| the amount by which revenues exceed expenses |
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Definition
| The amount by which expenses exceed revenues |
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Definition
| The ownership claim on total assets |
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Definition
| A financial statement that summarizes the changes in owner's equity for a specific period of time |
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Definition
| A business owned by two or more persons associated as partners |
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Definition
| A business owned by one person |
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Definition
| The gross increase in owner's equity resulting from business activities entered into for the purpose of earning income |
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Term
| Sarbanes-Oxley Act of 2002 (SOX) |
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Definition
| Law passed by Congress in 2002 intended to reduce unethical corporate behavior |
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| Securities and Exchange Commission (SEC) |
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Definition
| A governmental agency that requires companies to file financial reports in accordance with generally accepted accounting principles |
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Term
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Definition
| A financial statement that summarizes information about cash inflows (receipts) and cash outflows (payments) for a specific period of time |
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Definition
| The economic events of a business that are recorded by accountants |
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Definition
| A record of increases and decreases in specific asset, liability, or owner equity items |
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Definition
| A list of accounts and the account numbers that identify their location in the ledger |
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Term
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Definition
| A journal entry that involves three or more accounts |
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Term
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Definition
| the right side of an account |
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Term
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Definition
| the left side of an account |
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Term
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Definition
| A system that records in appropriate accounts the dual effect of each transaction |
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Definition
| The most basic form of journal |
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Definition
| A ledger that contains all asset, liability, and owner's equity accounts |
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Term
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Definition
| An accounting record in which transactions are initially recorded in chronologial order |
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Definition
| The entering of transaction data in the journal |
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Definition
| The entire group of accounts maintained by a company |
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Definition
| An account balance on the side where an increase in the account is recorded |
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Definition
| The procedure of transferring journal entries to the ledger accounts |
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Term
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Definition
| A journal entry that involves only two accounts |
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Definition
| The basic form of an account |
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Term
| Three-column form of account |
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Definition
| A form with columns for debit, credit, and balance amoutns in an account |
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Term
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Definition
| A list of accounts and their balances at a given time |
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