Term
|
Definition
| Is considered to be separate from its owners and from any other company. |
|
|
Term
|
Definition
| Is an exchange of property or service by a company with another entity. |
|
|
Term
|
Definition
| Since the purpose of recording and analyzing a company's transactions is to understand the comapny's financial activities, it makes sense to record transactions in terms of money. |
|
|
Term
|
Definition
| States that a company records its transactions based on the dollars exchanged (the cost) at the time the transaction occurred. |
|
|
Term
|
Definition
| The process used to identify, measure, record, and retain information about a company's activites so that the company can prepare its financial statements. |
|
|
Term
|
Definition
| Are a company's economic resources that will provide future benefits to the company. |
|
|
Term
|
Definition
| Amounts owed by customers to the company. (assets) |
|
|
Term
|
Definition
| The right to insurance protection. (assets) |
|
|
Term
|
Definition
| Are the economic oligations (debts) of a company. |
|
|
Term
|
Definition
| The external parties to whom a company owes the debts. |
|
|
Term
|
Definition
| Amounts owed to suppliers for credit purchases. (liabilities) |
|
|
Term
| Wages and Salaries Payable |
|
Definition
| Amounts owed to employees for work they have done. (liabilities) |
|
|
Term
|
Definition
| Documents that establish a claim. (liabilities) |
|
|
Term
|
Definition
| A claim established by the creditors. (liabilities) |
|
|
Term
|
Definition
| The owner's current investment in the assets of the company. |
|
|
Term
|
Definition
| A partnership's balance sheet would refer to ...? |
|
|
Term
|
Definition
| A corporation's balance sheet would refer to. |
|
|
Term
|
Definition
| Is sometimes also referred to as Owner's Equity because creditors have first legal claim to a company's assets. |
|
|
Term
|
Definition
| When the total of the liabilities (creditors' equity) is combined with the owner's equity. |
|
|
Term
| Dual Effect of Transactions |
|
Definition
| To keep the acounting equation in balance, a company must make at least two changes in its assets, liabilities, or owner's equity when it records each transaction. |
|
|
Term
|
Definition
| A place a company uses to record and retain information about the effect of its transactions on a specific asset, liability, or owner's equity item. |
|
|
Term
|
Definition
| The amount in the account at the beginning of the day plus the increases and minus the decreases recorded in the column that day. |
|
|
Term
|
Definition
| Is the excess of revenues over expenses for a specific time period. |
|
|
Term
|
Definition
| The prices a company charged to its customers for goods or services it provided during a specific time period. |
|
|
Term
|
Definition
| The costs of providing the good or services to customers during the time period. |
|
|
Term
|
Definition
| Includes purchaseing (or producing) inventory, selling the inventory (or services), delivering the inventory (or services), and collecting and paying cash. |
|
|
Term
|
Definition
| Is the time span for which a company reports its revenues and expenses. |
|
|
Term
|
Definition
| The time span for which a company reports its revenues and expenses. |
|
|
Term
|
Definition
| Includes purchasing (or producing) inventory, selling the inventory (or services), delivering the inventory (or services), and collecting and paying cash. |
|
|
Term
|
Definition
| States that to determine its net income for an accounting period, a company computes the expenses from the total revenues earned in that period. |
|
|
Term
|
Definition
| Recording revenue and related expense transactions in the same accounting period that it provides goods or services (in the period in which it earns the revenue), regardless of whether it receives or pays cash in that period. |
|
|
Term
| End-of-Period Adjustments |
|
Definition
| Before calculating its net income, a company must analyze its unique expenses to see if it needs to adjust (increase) the total expenses (or revenues) to include those without source documents. |
|
|
Term
|
Definition
| The part of the cost of a physical asset allocated as an expense to each time period in which the asset is used. |
|
|
