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Definition
| A record of increases and decreases in specific asset, liability, or stockholders 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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Definition
| issued in exchange for the owners investment paid in to the corporation |
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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
| distribution by a corporation to its stockholders on a pro rata (equal) basis |
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Term
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Definition
| a system that record in appropriate accounts the dual effect of each transaction |
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Term
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Definition
| the most basic form of journal |
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Term
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Definition
| A ledger that contains all asset, liability, and stockholders equity accounts |
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Term
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Definition
| An accounting record in which transactions are initially recorded in chronological order |
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Term
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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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Term
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Definition
| An account balance on the side where an increase in the account is recorded |
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Term
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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
| net income that is kept (retained) in the business |
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Term
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Definition
| A journal entry that involves only two accounts |
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Term
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Definition
| the basic form of 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 amounts in a n 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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Term
| Accural-basis accounting assumption |
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Definition
| transactions that change a company's financial statements are recorded in the periods in which the events occur |
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Term
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Definition
| ability to compare the accounting information of different companies because they use the same accounting principles |
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Term
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Definition
| use of the same accounting principles and methods from year to year within a company |
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Term
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Definition
| constraint of determining whether the cost that companies will incur to provide the information will outweigh the benefit that financial statement users will gain from having the information available |
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Term
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Definition
| An accounting principle that states that companies should record assets at their cost |
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Term
| Economic entity assumption |
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Definition
| an assumption that every economic entity can be separately identified and accounted for |
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Term
| expense recognition principle |
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Definition
| efforts (expenses) should be matched with results (revenues) |
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Term
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Definition
| Assests and liabilities should be reported at fair value (the price received to sell an asset or settle a liability |
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Term
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Definition
| information that is complete, neutral, and free from error |
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Term
| Full disclosure principle |
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Definition
| accounting principle that dictates that comnpanies disclose circumstances and events that make a difference to financial statement users |
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Term
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Definition
| the assumption that the company will continue in operation for the foreseeable future |
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Term
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Definition
| the constraint of determining whether an item is large enough to likely influence the decision of an investor or creditor |
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Term
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Definition
| an assumption that require that only those things that can be expressed in money are included in the accounting records |
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Term
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Definition
| the quality of information that indicates the information makes a difference in a decision |
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Term
| Revenue recognition principle |
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Definition
| companies recognize revenue in the accounting period in which the performance obligation is satisfied |
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Term
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Definition
| information that is available to decision-makers before it loses its capacity to influence decisions |
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Term
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Definition
| an assumption that the life of a business can be divided into artificial time periods and that useful report covering those periods can be prepared for the business |
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Term
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Definition
| information presented in a clear and concise fashion so taht users can interpret it and comprehend its meaning |
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Term
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Definition
| information that is proven to be free from error |
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