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Mid Term
Studying for the midterm
13
Accounting
Undergraduate 3
05/05/2011

Additional Accounting Flashcards

 


 

Cards

Term
GAAP
Definition
Generally Accepted Accounting Principles; the standards or rules of accounting used in the United States in preparation of general purpose financial statements.
Term
General purpose financial statements
Definition
The financial statements, including balance sheet, income statement, and statement of cash flows, required under GAAP.
Term
FASB
Definition
Financial Accounting Standards Board. A private organization funded by the FAF and currently responsible for the establishment of GAAP in the United States.
Term
Income statement
Definition
"statement of operations," "statement of profit and loss," "P & L statement" or "statement of earnings." a company's revenues less expenses and the resulting net income or net loss for a period of time.
Term
Balance sheet
Definition
"statement of financial position." Lists as of the end of an accounting period, all of an entity's assets, liabilities and owners' equity.
Term
Matching principle
Definition
accrual basis accounting that governs the timing of expenses. The matching principle requires the costs of operating a company to be recorded as expenses in the period in which those costs provide benefits to the company, not necessarily when those costs are actually paid in cash.
Term
Revenue recognition principle
Definition
The part of accrual basis accounting that deals with the timing of revenues. This provides for revenues to be recorded in the period in which those revenues are earned, not necessarily when cash is collected from customers.
Term
Historical cost
Definition
The original cost of acquiring an asset. In an arm's-length transaction, an asset's cost is also its fair market value at the date of acquisition.
Term
Entity principle
Definition
assets and liabilities of the company as an entity separate from its owners. That means that any personal assets or liabilities of owners should not be included in the company's financial statements.
Term
Equity financing
Definition
The acquiring of assets or resources for a business. Loan doesn't have to be paid back.
Term
Debt financing
Definition
The acquiring of business assets through borrowing or the incurring of liabilities. Must be repaid in the future and has interest, but you don't give up ownership.
Term
Statement of cash flows
Definition
Financial statement that shows cash movement.
Term
Gross Margin
Definition
Sales Revenue - Sales Discounts - Sales Returns = Net Sales - Cogs
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