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| an information system that reports on the economic activities and financial condition of a business or organization. |
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| a group of people or entities organized to exchange items of value. |
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| provide financial resources in exchange for ownership interests in businesses. owners expect businesses to return to them a share of the business income earned. |
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| lend financial resources to businesses. instead of a share of business income, they expect businesses to repay borrowed resources at a future date. |
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| the resources controlled by a business. |
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| a process by which a ceased business sells its remaining assets and the sale proceeds are returned to the investors and creditors |
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| the users of accounting information. includes resource providers, financial analysts, brokers, attorneys, govt. regulators, and news reporters. |
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| the people or businesses accountants report on |
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| detailed info about the elements |
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| a legal action to obtain money, property, or the enforcement of a right against another party. |
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| assets = claims (liabilities + equity) |
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| creditor claims or future obligations of the enterprise. |
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| the ownership interest in the business |
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| the portion of assets that has been provided by earnings activities and not returned as dividends. |
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| an economic occurrence that changes an enterprise's assets, liabilities, or stockholders' equity. |
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a particular kind of event that involves transferring something of value between 2 entities.
(acquiring assets from owners, borrowing money from creditors, and purchasing or selling goods and services.) |
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| increases the business's assets (cash) and its stockholders' equity (common stock) |
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| asset exchange transaction |
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| simply reflects changes in the composition of assets. (paid for land, deduct cash but add to land) |
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| the assets and services consumed to generate revenue |
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| a business transfers some or all of its assets to owners |
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| requires that most assets be reported at the amount paid for them regardless of increases in market value. |
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| the complete collection of a company's accounts |
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| matches the expenses with the revenues that occur |
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| when revenue exceeds expenses |
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| expenses are greater than revenue |
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| the practice of pairing revenues with expenses on the income statement |
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| include obtaining cash from owners or paying cash to owners |
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| involve paying cash to purchase long-term assets or receiving cash from selling long-term assets. |
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| involve receiving cash from revenue and paying cash for expenses |
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