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Definition
| Difference between the amounts receied from customers for goods or serices and the amounts paid for the inputs used to proide the goods or services. |
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Definition
| Provide services rather than products to customers. |
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Definition
| Sell products they purchases from other businesses to customers. |
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Definition
| Change basic inputs into products that are solde to customers. |
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Definition
| An information system that proides reports to user s abotu the economic activities and condition of a business. |
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Term
| Managerial accounting/Management accounting |
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Definition
| Objective is to provide relavant and timely information for managers and employees decision-making needs. |
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Definition
| Managerial accountants employed by a business |
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Term
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Definition
| Area of accounting that proides external users with information |
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Term
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Definition
| Moral principles that guide the conduct of individuals |
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Term
| Accounting Standards Board(FASB) |
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Definition
| Has primary responisbility for developing accounting principles. |
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Term
| Securities and Exchange Comission(SEC) |
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Definition
| An agency of the U.S. Government, has authority over the accounting and financial disclosures for companies who shares of ownership(stock) are traded and sold to the public. |
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| International Accounting Standards Board(IASB) |
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Definition
| Issues International Financial Reporting Standards(IFRSs) |
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Term
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Definition
| Limits the economic data in an accounting system to data related directly to the activities of the business. |
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Term
| Proprietorship+Partnership |
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Definition
Owned by one individual. Easy and cheap to organize. Resources are limited to those of the owner.
Used by small businesses. 10% of business organizations in the United States |
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Term
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Definition
Organized uner state or federal statutes as a separate legal taxable entity.
-Generates 90% of business in the United States.
Ownership is divided into shares called stock
Can obtain large amounts of resources by issuing stock.
used by large businesses. |
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Term
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Definition
Organized uner state or federal statutes as a separate legal taxable entity.
-Generates 90% of business in the United States.
Ownership is divided into shares called stock
Can obtain large amounts of resources by issuing stock.
used by large businesses. |
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Term
| Limited Liability Company(LLC) |
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Definition
10% of business organizations in the UNited States(combined with partnership)
Often used as an alternative to a partnership
-Has tax and legal liability advantages for owners |
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Term
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Definition
| Resources owned by a business. Includes cash, land, buildings, and equipment. |
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Term
| Rights or claims to the assets |
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Definition
1) The rights of creditors
2)Rights of owners
Creditors have the rights of debts of the business and these are called liabilities.
Owner's rights are called owner's equity. |
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Term
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Definition
Assets=Liabilities+Owner's Equity
$100,000-$30,000=$70,000 |
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Term
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Definition
| Economic condition that changes an entity's financial condition or its results of operations |
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Term
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Definition
| Stock issued to owners(stock holders) |
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Term
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Definition
| Owner's equity in a corporation |
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Term
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Definition
| Money earned by selling goods or services to it's costumers |
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Term
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Definition
| The liability created by a purchase on account |
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Term
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Definition
| Items such as supplies that will be used in the business in the future. These bad boys are motha fcuken' assets!!!WOOTs |
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Term
| Revenue from providing servies is recorded as fees earned. |
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Definition
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Term
| Revenue from a sale of merchandise is recorded as sales. |
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Definition
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Term
| Other examples of revenue |
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Definition
Rent whic his recorded as rent revenue
Interest is recorded as interest revenue |
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Term
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Definition
| Is stockholder's equity created from business operations through revenue and expense transactions. |
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Term
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Definition
| Reparts prepared for users that provide information |
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Term
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Definition
| A summary of the revenue and expenses for a specific period of time such as a month |
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Term
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Definition
| A summary of the changes in retained earning that have occured during a specific period of time, such as a month. |
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Term
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Definition
| A list of the assets, liabilities, and stockholder's equity as of a specific date, usually at the close of hte last day of the month or year. |
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Term
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Definition
| A summary of the cash receipts and cash payments for a specific period of time, ausch as a month or year. |
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Term
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Definition
| Concept is applied by matching the expenses incurred during a period with the revenue that those expenses generated. |
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Term
| Net Income/net profit/earnings |
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Definition
| Excess of the revenue over the expenses |
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Term
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Definition
| If the expenses exceeed the revenue, the excess is the net loss. |
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Term
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Definition
| Separate record designed to show the increased and decreases in each accounting equation element. |
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Term
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Definition
Left side is debit
Right side is credit |
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Term
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Definition
| Excess of the debits of an asset account over its credits |
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Term
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Definition
| Group of accounts for a business entity |
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Term
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Definition
| List of the accounts in the ledger |
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Term
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Definition
| Debts owned to outsiders(creditors) |
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Term
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Definition
| assets of the businesss.Stockholder's right to the |
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Term
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Definition
| A dvidends account represents distributions of earnings to stockholders. |
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Term
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Definition
| Are increases to stockholder's equity(retained earnings) as a result of selling services or products to customers. |
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Term
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Definition
| Result from using up assets or consuming servies in the process of genratin revenues |
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Term
| Double entry accounting system |
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Definition
System based on teh accounting equation and requires
1. Every business transaction to be recored in at least two accounts.
2. The total debits recorded for each transaction to be equal to the total credits recorded. |
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Term
| Stockholder's equity accounts are increased by credits |
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Definition
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Term
| Revenue accounts are increased by credits and decreased by debits |
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Definition
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Term
| Expense accounts are increasd by debits and decreased by credits |
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Definition
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Term
Asset accounts are increased with debits, asset accounts normally have debit balances.
Liability accounts normally have credit balances. |
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Definition
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Term
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Definition
| Process of recording a transaction in the journal |
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Term
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Definition
| entry in the journal..lolz. |
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Term
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Definition
| Process of transferring debits and credits from the journal entries to the accounts |
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Term
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Definition
| If the error has already been journalized and posted to the ledger a correcting journal entry is normally prepared. |
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Term
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Definition
| Amount of each item on a current financial statement is compared with the same item on an earlier statement. |
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Term
| Paying an account payable will decrease liabilities and decrease assets. |
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Definition
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