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Definition
| A record in which transactions affecting individual assets, liabilities, owners' equity, revenues, and expenses are recorded. |
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Term
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Definition
| Assets = Liabilities + Owners' Equity (A = L + OE). The fundamental relationship represented by the balance sheet and the foundation of the bookkeeping process. |
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| A liability representing an amount payable to another entity, usually because of the purchase of merchandise services on credit. |
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Definition
| An asset representing a claim against another entity, usually arising from selling goods or services on credit. |
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| Accounting that recognizes revenues and expenses as they occur, even though the cash receipt from the revenue or the cash disbursement related to the expense may occur before or after the event that causes revenue or expense recognition. |
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Definition
| Amounts that are owed by an entity on the balance sheet date. |
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Definition
| The sum of the depreciation expense that has been recognized over time. Accumulated depreciation is a contra asset- an amount that is subtracted from the cost of the related asset on the balance sheet. |
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Term
| additional paid-in-capital |
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Definition
| The excess of the amount received from the sale of stock over the par value of the shares sold. |
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Term
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Definition
| Probable future economic benefits obtained or controlled by an entity as a result of past transactions or events. |
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Definition
| The financial statement that is a listing of the entity‘s assets, liabilities, and owners‘ equity at a point in time. Sometimes this statement is called the statement of financial position. |
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Definition
| Another term for the accounting equation. |
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Definition
| An asset on the balance sheet that represents the amount of cash on hand and balances in bank accounts maintained by the entity. |
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Term
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Definition
| The class of stock that represents residual ownership of the corporation. |
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Term
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Definition
| A form of organization in which ownership is evidenced by shares of stock owned by stockholders; its features, such as limited liability of the stockholders, make this the principal form of organization for most business activity. |
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Term
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Definition
| Cost of merchandise sold during the period; an expense deducted from net sales to arrive at gross profit? A frequently used synonym is cost of sales. |
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Term
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Definition
| cash and those assets that are likely to be converted to cash or used to benefit the entity within one year of the balance sheet date. |
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Term
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Definition
| Those liabilities due to be paid within one year of the balance sheet date. |
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Term
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Definition
| The accounting process of recognizing the cost of an asset that is used up over its useful life to an entity. |
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Term
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Definition
| The expense recognized in a fiscal period for the depreciation of an asset. |
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Term
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Definition
| A distribution of earnings to the owners of a corporation. |
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Term
| earnings per share of common stock outstanding |
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Definition
| Net income available to the common stockholders divided by the average number of shares of common stock outstanding during the period? Usually referred to simply as EPS. |
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Term
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Definition
| The ownership right associated with an asset. See owners' equity. |
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Term
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Definition
| Outflows or other using up of assets or incurring a liability during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity‘s major operations. |
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Term
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Definition
| The annual period used for reporting to owners. |
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Term
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Definition
| Increases in net assets from incidental transactions that are not revenues or investments by owners. |
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Term
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Definition
| A presumption that the entity will continue in existence for the indefinite future. |
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Term
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Definition
| Net sales less cost of goods sold. Sometimes called gross margin. |
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Term
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Definition
| The difference between gross profit and operating expenses. Also referred to as operating income. |
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Term
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Definition
| The financial statement that summarizes the entity‘s revenues, expenses, gains, and losses for a period of time and thereby reports the entity‘s results of operations for that period of time. |
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Term
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Definition
| Probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events. |
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Term
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Definition
| Decreases in net assets from incidental transactions that are not expenses or distributions to owners. |
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Term
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Definition
| The concept that expenses incurred in generating revenues should be deducted from revenues earned during the period for which results are being reported. |
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Term
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Definition
| Items held by an entity for sales to customers in the normal course of business. |
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Term
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Definition
| The difference between assets and liabilities; also referred to as owners' equity. |
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Term
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Definition
| The excess of revenues and gains over expenses and losses for a fiscal period. |
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Term
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Definition
| Gross sales, less sales discounts and sales returns and allowances. |
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Term
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Definition
| Another term for net assets and owners' equity! But not as appropriate because the term worth may be misleading. |
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Term
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Definition
| An economic concept relating to income forgone because an opportunity to earn income was not pursued. |
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Term
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Definition
| The equity of the entity's owners in the assets of the entity. Sometimes called net assets; the difference between assets and liabilities. |
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Definition
| The amount invested in the entity by the owners |
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Term
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Definition
| An arbitrary value assigned to a share of stock when the corporation is organized. Sometimes used to refer to the stated value or face amount of a security. |
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Term
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Definition
| A form of organization indicating ownership by two or more Individuals or corporations without the limited liability and other features of a corporation. |
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Term
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Definition
| The excess of venues and gains over expenses and losses for a fiscal period; another term for net income. |
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Term
| profit and loss statement |
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Definition
| Another term for the income statement. |
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Term
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Definition
| A firm of organization indicating individual ownership without the limited liability and other features of a corporation. |
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Term
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Definition
| Cumukative net income that has not been distributed to the owners of a corporation as dividends. |
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Term
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Definition
| Inflows of cash or increases in other assets, or the settlement of liabilities during a period, from delivering or producing goods, rendering services, or performing other activities that constitute the entity‘s major operations. |
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Term
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Definition
| The financial statement that explains why cash changed during a fiscal period. Cash flows from operating, investing, and financing activities are shown. |
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Term
| statement of changes in capital stock |
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Definition
| The financial statement that summarizes changes during a fiscal period in capital stock and additional paid-in capital. This information may be included in the statement of changes in owners‘ equity. |
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Term
| statement of changes in owners' equity |
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Definition
| The financial statement that summarizes the changes during a fiscal period in capital stock, additional paid-in capital, retained earnings, and other elements of owners‘ equity. |
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Term
| statement of changes in retained earnings |
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Definition
| The financial statement that summarizes the changes during a fiscal period in retained earnings. This information may be included in the statement of changes in owners‘ equity. |
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Term
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Definition
| Another term for the income statement; it shows the revenues, expenses, gains, and losses for a period of time and thereby the entity‘s results of operations for that period of time. |
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Term
| statement of financial position |
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Definition
| Another term for the balance sheet; a listing of the entity's assets, liabilities, and owners' equity at a point in time. |
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Term
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Definition
| Another term for the income statement. |
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Term
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Definition
| The evidence of ownership of a corporation. |
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Term
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Definition
| The owners of a corporation's stock; sometimes called shareholders. |
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Term
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Definition
| A corporation whose stock is more than 50 percent owned by another corporation. |
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Term
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Definition
| Economic interchanges between entities that are accounted for and reflected in financial statements. |
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