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ACCT-201-107Z
chapter 1 vocab
54
Accounting
Undergraduate 1
09/07/2016

Additional Accounting Flashcards

 


 

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Term
account form
Definition
the form of balance sheet that resembkes the basic format of the accounting equation, with assets on the left side and the Liabilities and Stockholders' Equity sections on the right side.
Term
account payable
Definition
the liability created by a purchase on account.
Term
account receivable
Definition
a claim against the customer created by selling merchandise or services on credit
Term
accounting
Definition
an information system that provides reports to users about the economic activities and condition of a business
Term
accounting equations
Definition
Assests = Liabilities + Owner's Equity.
Term
assests
Definition
the resources owned by a business
Term
balance sheet
Definition
a list of the assests, liabilities, and stockholders' equity as of a specific date, usually at the close of the last day of a month or a year.
Term
business
Definition
an organization in which basic resources(inputs), such as materials and labor, are assembled and processed to provide goods or services (outputs) to customers.
Term
business entity concept
Definition
a concept of accounting that limits the economic data in the accounting systwem to data related directly to the activites of the business.
Term
business transaction
Definition
an economic event or condition that directly changes an entity's financial condition or directly affects its results of operations.
Term
Certified Public Account (CPA)
Definition
public accountatns who have met a state's education, experience, and examination requirements.
Term
common stock
Definition
the stock outstanding when a corporation has issued only one class of stock
Term
corporation
Definition
a business organized under state or federal statues as a separate legal entity.
Term
cost concept
Definition
A concept of accounting that determines the amount initially entered into the accounting records for purchases.

 

Term
earnings
Definition
The amount by which revenues exceed expenses.
Term
ethics
Definition
Moral principles that guide the conduct of individuals.
Term
expenses
Definition
Assets used up or services consumed in the process of generating revenues.
Term
fees earned
Definition
Revenue from providing services.
Term
financial accounting
Definition
The branch of accounting that is concerned with recording transactions using generally accepted accounting principles (GAAP) for a business or other economic unit and with a periodic preparation of various statements from such records.
 
Term
Financial Accounting Standards Board (FASB)
Definition
The authoritative body that has the primary responsibility for developing accounting principles.
Term
general-purpose financial statements
Definition
A type of financial accounting report that is distributed to -external users. The term ?general purpose? refers to the wide range of decision-making needs that the reports are designed to serve.
Term
generally accepted accounting principles (GAAP)
Definition
Generally accepted guidelines for the preparation of financial statements. 
Term
income statement
Definition
A summary of the revenue and expenses for a specific period of time, such as a month or a year.
Term
interest revenue
Definition
Money received for interest.
Term
International Accounting Standards Board (IASB)
Definition
An organization that issues International Financial Reporting Standards for many countries outside the United States.
Term
liabilities
Definition
The rights of creditors that represent debts of the business.
Term
limited liability company (LLC)
Definition
A business form consisting of one or more persons or entities filing an operating agreement with a state to conduct business with limited liability to the owners, yet treated as a partnership for tax purposes.
Term
management (or managerial) accounting
Definition
The branch of accounting that uses both historical and estimated data in providing information that management uses in conducting daily operations, in planning future operations, and in developing overall business strategies.
Term
manufacturing business
Definition
A type of business that changes basic inputs into products that are sold to individual customers.
Term
matching concept (or matching principle)
Definition
A concept of accounting in which expenses are matched with the revenue generated during a period by those expenses.
Term
merchandising business
Definition
A type of business that purchases products from other businesses and sells them to customers.
Term
net income or net profit
Definition
The amount by which revenues exceed expenses.
Term
net loss
Definition
The amount by which expenses exceed revenues.
Term
objectivity concept
Definition
A concept of accounting that requires accounting records and the data reported in financial statements to be based on objective evidence.
Term
owner's equity
Definition
The owner's right to the assets of the business.
Term
partnership
Definition
An unincorporated business form consisting of two or more persons conducting business as co-owners for profit.
Term
prepaid expenses
Definition
Items such as supplies that will be used in the business in the future.
Term
private accounting
Definition
The field of accounting whereby accountants are employed by a business firm or a not-for-profit organization.
Term
profit
Definition
The difference between the amounts received from customers for goods or services provided and the amounts paid for the inputs used to provide the goods or services.
Term
proprietorship
Definition
A business owned by one individual.
Term
public accounting
Definition
The field of accounting where accountants and their staff provide services on a fee basis.
Term
Public Company Accounting Oversight Board (PCAOB)
Definition
A new oversight body for the accounting profession that was established by the Sarbanes-Oxley Act.
Term
ratio of liabilities to owner's (stockholders') equity
Definition
A comprehensive leverage ratio that measures the relationship of the claims of creditors to stockholders' equity.
Term
rent revenue
Definition
Money received for rent.
Term
retained earnings
Definition
Net income retained in a corporation.
Term
retained earnings statement
Definition
A summary of the changes in the retained earnings that have occurred during a specific period of time, such as a month or a year.
Term
revenues
Definition
Increases in assets and stockholders' equity from performing services or delivering products to customers.
Term
sales
Definition
The total amount charged customers for merchandise sold, including cash sales and sales on account.
Term
Sarbanes-Oxley Act (SOX)
Definition
An act passed by Congress to restore public confidence and trust in the financial statements of companies.
Term
Securities and Exchange Commission (SEC)
Definition
An agency of the U.S. government that has authority over the accounting and financial disclosures for companies whose shares of ownership (stock) are traded and sold to the public.
Term
service business
Definition
A business providing services rather than products to customers.
Term
statement of cash flows
Definition
A summary of the cash receipts and cash payments for a specific period of time, such as a month or a year.
Term
stockholders' equity
Definition
The stockholders' right to the assets of the business.
Term
unit of measure concept
Definition
A concept of accounting requiring that economic data be recorded in dollars.
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