Term
| The functions of accounting are to : |
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Definition
| measure the activities of the company and communicate those measurements to people |
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Term
| The two primary functions of financial accounting are: |
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Definition
- measure the business activities
- communicate those measurement to external parties for decision making purposes
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Term
| Investors make desisions related to : |
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Definition
buying and selling the company's stock
( shares of ownership) |
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Term
Creditors make decisions on: |
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Definition
related to lending money to the company. |
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Term
| Financing Activities are transactions involving what? |
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Definition
- external sources of funding
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Term
A business engages in three fundamental activites: |
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Definition
- financing
- investing
- operating
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Term
| Owners of a company what thier own funds in a company while creditors what their own money? |
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Definition
Owners = invest
Creditors = lend |
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Term
| Investing activites of a company include two things... |
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Definition
1) long term resoures ( land, buildings etc.
2) any resources related to the company's normal operations |
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Term
| Operating activites include transactions that what? |
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Definition
| relate to the primary operations of the company |
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Term
| Ammounts owed to credtiors = |
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Definition
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Term
| Owners claims to resources = |
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Definition
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Term
Accounting Equations =
Assets = |
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Definition
| Liabilties + Stockholders' Equity |
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Term
Accounting Equations =
Stockholders' Equity = |
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Definition
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Term
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Definition
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Term
| Liabilites are the same as: |
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Definition
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Term
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Definition
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