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ACCTG 111
Chapter 1
36
Accounting
Undergraduate 1
01/28/2013

Additional Accounting Flashcards

 


 

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Term
Assets
Definition
A resource a business owns or has.
Term
Balance Sheet
Definition
A financial statment that reports the assets, liabilities,and stockholders equity at a specific date.
Term
Basic Accounting Equation
Definition
Assets = Liabilities + Owner's Equity
Term
Bookkeeping
Definition
A part of accounting that involves only the recording of economic events
Term
Convergence
Definition
The process of reducing the differences between GAAP (Generally Accepted Accounting Principals) and IFRS (International Finanical Reporting Standards)
Term
Corporation
Definition
A business organized as a separate legal entity under the state corporation law, having ownership divided into transferable shares of stock.
Term
Cost Principal
Definition
An accounting principle that states that companies should record assets at their costs.
Term
Drawings
Definition
Withdrawal of cash or other assets from an unincorporated business for the personal use of the owner(s).
Term
Economic Entity Assumption
Definition
An assumption that requires that the activities of the entity be kept separate and distinct from the activities of its owner and all other economic entities
Term
Expanded Accounting Equation
Definition
Assets = Liabilities + Owner's Capital - Owner Drawings + Revenues - Expenses
Term
Accounting Transaction
Definition
An economic event that is recorded in the accounting records because it changed the assets, liabilities, or owner's equity items of the organization.
Term
Accounts Payable
Definition
A liability created by buying services or products on credit. It is an obligation to pay cash to a supplier in the future.
Term
Accounts Receivable
Definition
An asset created when selling services or products to customers who promise to pay cash in the future.
Term
Annual Report
Definition
Information that a company gives each year to its shareholders and other interested parties about its operations and financial position. It includes the financial statements and auditor's report, in addition to information and reports by management.
Term
Cash Flow Statement
Definition
A financial statement that provides information about the cash inflows (receipts) and cash outflows (payments) for a specific period of time.
Term
Expenses
Definition
The cost of assets consumed or services used in a company's ordinary business activities. These result in a reduction of owner's equity.
Term
Fair Value
Definition
The amount of the consideration that would be agreed upon in an arm's-length transaction between knowledgeable, willing parties who are under no compulsion to act. (Unbiased)
Term
Going Concern Assumption
Definition
An assumption that a company will continue to operate in the foreseeable future.
Term
Income Statement
Definition
A financial statement that presents the revenues and expenses and resulting profit (or loss) for a specific period of time.
Term
Investments By the Owner
Definition
The increase in owner's equity that results from assets put into the business by the owner.
Term
Liabilities
Definition
Current obligations, arising from past events, to make future payments of assets or services.
Term
Limited Liability
Definition
The legal principle that the owner's liability for the debts of the business is limited to the amount that he/she invested in the business.
Term
Loss
Definition
The amount by which expenses are greater than revenues. This property decreases owner's equity.
Term
Measurement
Definition
The process of determining the amount that should be recognized in a principle.
Term
Monetary Unit Assumption
Definition
An assumption that states that only transaction data that can be expressed as an amount of money may be included in the accounting records. It is also assumed that this unit is stable.
Term
Net Assets
Definition
Total assets minus total liabilities; this property is equal to owner's equity.
Term
Note Payable
Definition
A liability supported by a written promise to pay a specific amount, at a specific time, in the future.
Term
Owner's Equity
Definition
The owner's claim on the assets of the company, this property is equal to total assets minus total liabilities.
Term
Partnership
Definition
An association of two or more persons to carry on as co-workers of a business for profit.
Term
Profit
Definition
The amount by which revenues are greater than expenses. This property increases owner's equity.
Term
Proprietorship
Definition
A small business owned by one person.
Term
Publicly Accountable Enterprises
Definition
Publicly traded companies as well as securities brokers and dealers, banks, and credit unions whose role it to hold assets for the public as part of their primary business.
Term
Recognition
Definition
The process of recording a transaction in the accounting records.
Term
Revenues
Definition
The increase in assets, or decrease in liabilities, that results from business activities that are done to earn profit.
Term
Statement of Owner's Equity
Definition
A financial statement that summarizes the changes in owner's equity for a specific period of time.
Term
Unlimited Liability
Definition
The principle that the owners of a business are personally liable (responsible) for all debts of the business.
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