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Definition
| A liability backed by the general reputation and credit standing of the debtor |
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Definition
| Assets = Liabilities + Owners' Equity |
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Term
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Definition
| An economic resource that is expected to be of future benefit |
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Definition
| List of an entity's assets, liabilities, and owners' equity as of a specified date. Also called the statement of financial position |
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Definition
| A business owned by stockholders |
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Definition
| An asset that is expected to be converted to cash, sold, or consumed during the next 12 months, or within the normal operating cycle if longer than a year. |
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Definition
| A debt due to be paid within one year or within the entity's operating cycle. |
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Term
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Definition
| Negative balance in retained earnings caused by net losses over a period of years. |
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Definition
| Distributions (usually cash) by a corproation to its stockholders. |
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Term
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Definition
| Decrease in retained earnings that results from operations, the cost of doing business, opposite of revenues |
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Term
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Definition
| The amount a business could sell an asset for, or the amount a business could pay top settle a liability |
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Definition
| The branch of accounting that provides information to people outside the firm |
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Term
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Definition
| Another name for property, plant, and equipment |
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Term
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Definition
| Generally accepted accounting principles - accouting guidelines |
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Definition
| Holds that the entity will remain in operation for the foreseeable future |
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Term
| historical cost principle |
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Definition
| Principle that states that assets and services should be recorded at their actual cost |
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Term
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Definition
| An economic obligation (a debt) payable to an individual or an organization outside the business |
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Term
| limited liability company |
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Definition
| A business organization in which the business (not the owner) is liable for the company's debts. |
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Definition
| A liability that falls due beyond one year from the date of the financial statements |
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Term
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Definition
| The branch of accounting that generates information for the internal decision makers of a business, such as top executives. |
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Term
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Definition
| The merchandise that a company sells to customers, also called inventory. |
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Term
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Definition
| another name for net income |
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Term
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Definition
| Excess of total revenue over total expenses. ALso called net earnings or net profit. |
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Term
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Definition
| A liability evidenced by a written promise to make a future payment |
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Term
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Definition
| Activities that create revenue or expenses in the entity's major line of business (a seciotn of the statement of cash flows) |
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Term
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Definition
| The claim of the owners of a business to the assets of the business. Also called capital, stockholders' equity, or net assets |
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Term
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Definition
| The amount of stockholders' equity that stockholders have contributed to the corporation. Also called contributed capital. |
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Term
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Definition
| An association of two or more persons who co-own a business for profit. |
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Term
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Definition
| Another name for property, plant and equipment |
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Term
| property, plant and equipment |
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Definition
| Long-lived assets, such as land, buildings, and equipment, used in operations of the business. |
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Definition
| A business with a single owner |
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Term
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Definition
| The amount of stockholders' equity that the corporation has earned through profitableoperation and has not given back to stockholders. |
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Term
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Definition
| Increase in retained earnings from delivering goods or services to customers or clients |
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Term
| stable-monetary-unit assumption |
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Definition
| The reason for ignoring the effect of inflation in the acounting records, based on the assumption that the dollars purchasing power will remain stable. |
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Term
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Definition
| Reports cash receipts and cash payments classified acording to the entity's major activities: operating, investing and financing. |
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Term
| statement of financial position |
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Definition
| Another name for balance sheet |
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Term
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Definition
| Shares into which the owners' equity of a corporation is divided. |
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Term
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Definition
| A person who owns stock in a corporation; a shareholder |
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Term
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Definition
| THe stockholders' ownership interest in the assets of a corporation |
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Term
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Definition
| The record of the changes that have occured in a particular asset, liability, or stockholders' equity during a period. The basic summary device of accounting. |
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Term
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Definition
| A liability for an expense that has not yet been paid by the company |
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Term
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Definition
| Money and any medium of exchange that a bank accepts at face value |
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Term
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Definition
| List of the company's accounts and their account numbers |
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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
| The chronological accounting record of an entity's transactions |
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Term
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Definition
| Copying amounts from the journal to the ledger |
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Term
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Definition
| Any event that has a financial impact on the business and can be measured reliably |
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Term
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Definition
| A list of all the ledger accounts with their balances |
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Term
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Definition
| An expense or a revenue that occurs before the business pays or receives cash. An accurual is the opposite of a deferral. |
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Term
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Definition
| Accounting that records the impact of a business event as it occurs, regardless of whether the transaction affected cash. |
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Term
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Definition
| An expense incurred but not yet paid in cash |
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Term
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Definition
| A revenue that has been earned but not yet received in cash. |
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Term
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Definition
| The cumulative sum of all depreciation expense from the date of acquiring a plant asset. |
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Term
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Definition
| A list of all the ledger accounts with their adjusted balances. |
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Term
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Definition
| The asset's cost minus the accumulated depreciation |
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Term
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Definition
| Accounting that records only transactions in which cash is received or paid |
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Term
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Definition
| A balance sheet that shows current assets separate from long-term assets, and current liabilities separate from long-term liabilities |
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Term
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Definition
| The process of closing the accounts to begin recording the next period's transactions. Closing the accounts consists of journalizing and posting the closing entries to set the balances of revenue, expense, and dividends accounts to zero. Also claased closing the accounts. |
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Term
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Definition
| An account that always has a companion account and whose normal balance is opposite that of the companion account. |
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Term
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Definition
| An asset that is expected to be converted to cash, sold, or consumed during the next 12 months, or within the business's normal operating cycle if longer than a year. |
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Term
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Definition
| A debt due to be paid within one year or withn the entity's operating cycle if the cycle is longer than a year. |
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Term
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Definition
| Current assets divided by current liabilities. Measures a company's ability to pay current liabilities with current assets. |
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Term
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Definition
| Ratio of total liabilities to total assets. States the proportion of a company's ability to pay current liabilities with current assets. |
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Term
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Definition
| An adjustment for which the business paid or received cash in advance. Examples include prepaid rent, prepaid insurance, and supplies. |
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Term
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Definition
| Allocation of the cost of a plant asset to expense over its useful life. |
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Term
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Definition
| Measure of how quickly an item can be converted to cash. |
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Term
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Definition
| An asset that is not a current asset |
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Term
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Definition
| A liability that is not a current liability |
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Term
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Definition
| The basis for recording expenses. |
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Term
| multi-step income statement |
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Definition
| An income statement that contains subtotals to highlight important relationships between revenues and expenses. |
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Term
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Definition
| Time span during which cash is paid for goods and services that are sold to customers who pay the business in cash |
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Term
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Definition
| Asset, liability, and stockholders' equity accounts that are not closed at the end of the period. |
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Term
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Definition
| A catagory of miscellaneous assets that typically expire or get used in the near future. |
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Term
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Definition
| The basis for recording revenues; tells accountants when to record revenue and the amount of revenue to record |
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Term
| single-step income statement |
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Definition
| An income statement that lists all the revenues together under a heading such as Revenues or Revenues & Gains. Expenses occur in a separate catagory called Expenses or Expenses & Loses. |
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Term
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Definition
| The revenue and expense accounts that relate to a limited period and are closed at the end of the period. For a corporation the Dividends Account is also temporary. |
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Term
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Definition
| Ensures the accounting information is reported at regular intervals |
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Term
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Definition
| A liability created when a business collects cash from customers in advance of earning the revenue. The obligation is to provide a product or service in the future. |
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Term
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Definition
| A periodic examination of a company's financial statements and accounting systems, controls, and records that produce them. Audits can be internal or external. External audits are usually performed by CPAs. |
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Term
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Definition
| Collections of money by the bank on behalf of the depositor. |
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Term
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Definition
| A document explaining the reasons for the difference between a depositor's records and the bank's records about the depositor's cash. |
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Term
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Definition
| Dcoument showing the beginning and ending balances of a particular bank account listing the month's transactions that affected the account. |
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Term
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Definition
| A quantitiative expression of a plan that helps managers coordinate the entity's activities. |
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Term
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Definition
| A budget that projects the entity's future cash receipts and cash distributions. |
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Term
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Definition
| Investments such as time deposits, certificates of deposit, or high-grade government securities that are considered so similar to cash that they are combined with cash for financial disclosure purposes on the balance sheet. |
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Term
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Definition
| Document instructing a bank to pay the designated person or business the specified amount of money. |
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Term
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Definition
| A malicious program that enters a company's computer system and destroys program and data files |
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Term
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Definition
| The chief accounting officer of a business |
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Term
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Definition
| A deposit recorded by the company but not yet by its bank |
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Term
| electronic fund transfer (EFT) |
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Definition
| System that transfers cash by electronic communication rather than by paper documents |
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Term
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Definition
| Mathematical rearraning of the data within an electronic file to prevent unauthorized access to information |
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Term
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Definition
| Identifying data that is not within "normal limits" so that managers can follow up and take corrective action. |
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Term
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Definition
| An insurance policy taken out on employees who handle cash |
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Term
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Definition
| An electronic barrier to product computer systems |
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Term
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Definition
| An intentional misrepresentation of facts, made for the purpose of persuading another party to act in a way that causes injury or damage tot hat party. |
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Term
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Definition
| The three elements that are present in almost all fraud cases: motive opportunity and rationalization. |
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Term
| fradulant financial reporting |
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Definition
| Fraud perpetrated by management by preparing misleading financial statements. |
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Term
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Definition
| A way to account for petty cash by maintaining a constant balance in the petty cash account. |
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Term
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Definition
| Organizational plan and related measures adopted by an entity to safeguard assets, encourage adherence to company policy, promote operational efficiency, and ensure accurate and reliable accounting records |
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Term
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Definition
| A fraudulant scheme to steal cash through misappropriating customer payments and posting payments from other customers to the affected accounts to cover it up. |
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Term
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Definition
| A system of handling cash receipts by mail whereby customers remit payment directly to the bank, rather than directly with the entity. |
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Term
| misappropriation of assets |
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Definition
| Fraud commited by employees by stealing assets from the company. |
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Term
| nonsufficient funds (NSF) check |
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Definition
| A "hot" check, one for which the payer's bank account has insufficient money to pay the check. NSF are cash receipts the turn out to be worthless. |
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Term
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Definition
| A budget of future net income. The operating budget projects a company's future revenue and expenses. It is usually prepared by the line item of the company's income statement. |
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Term
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Definition
| A check issued by the company and recorded on its books but not yet paid by its bank. |
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Term
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Definition
| Fund containing a small amount of cash that is used to pay minor amounts. |
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Term
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Definition
| Creating bogus websites for the purposes of stealing unauthorized data. |
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Term
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Definition
| A malicious computer program that hides within legitimate programs and acts like a computer virus. |
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