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| A resource a business owns or has. |
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| A financial statment that reports the assets, liabilities,and stockholders equity at a specific date. |
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| Basic Accounting Equation |
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| Assets = Liabilities + Owner's Equity |
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| A part of accounting that involves only the recording of economic events |
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| The process of reducing the differences between GAAP (Generally Accepted Accounting Principals) and IFRS (International Finanical Reporting Standards) |
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| A business organized as a separate legal entity under the state corporation law, having ownership divided into transferable shares of stock. |
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| An accounting principle that states that companies should record assets at their costs. |
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| Withdrawal of cash or other assets from an unincorporated business for the personal use of the owner(s). |
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| Economic Entity Assumption |
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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 |
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| Expanded Accounting Equation |
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Definition
| Assets = Liabilities + Owner's Capital - Owner Drawings + Revenues - Expenses |
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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. |
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| A liability created by buying services or products on credit. It is an obligation to pay cash to a supplier in the future. |
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| An asset created when selling services or products to customers who promise to pay cash in the future. |
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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. |
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Definition
| A financial statement that provides information about the cash inflows (receipts) and cash outflows (payments) for a specific period of time. |
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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. |
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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) |
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Definition
| An assumption that a company will continue to operate in the foreseeable future. |
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Definition
| A financial statement that presents the revenues and expenses and resulting profit (or loss) for a specific period of time. |
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Definition
| The increase in owner's equity that results from assets put into the business by the owner. |
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Definition
| Current obligations, arising from past events, to make future payments of assets or services. |
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| 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. |
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Definition
| The amount by which expenses are greater than revenues. This property decreases owner's equity. |
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Definition
| The process of determining the amount that should be recognized in a principle. |
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| 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. |
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Definition
| Total assets minus total liabilities; this property is equal to owner's equity. |
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| A liability supported by a written promise to pay a specific amount, at a specific time, in the future. |
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Definition
| The owner's claim on the assets of the company, this property is equal to total assets minus total liabilities. |
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Definition
| An association of two or more persons to carry on as co-workers of a business for profit. |
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Definition
| The amount by which revenues are greater than expenses. This property increases owner's equity. |
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Definition
| A small business owned by one person. |
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Term
| Publicly Accountable Enterprises |
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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. |
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Definition
| The process of recording a transaction in the accounting records. |
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Definition
| The increase in assets, or decrease in liabilities, that results from business activities that are done to earn profit. |
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Term
| Statement of Owner's Equity |
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Definition
| A financial statement that summarizes the changes in owner's equity for a specific period of time. |
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Definition
| The principle that the owners of a business are personally liable (responsible) for all debts of the business. |
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