Term
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Definition
| An information system that provides reports to stakeholders about the economic activities and condition of a business. |
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Term
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Definition
Assets = Liabilities + Stockholders’ Equity.
(Hint: Has=Owes + Owns) |
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Term
| Accounting period concept |
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Definition
| An accounting concept in which accounting data are recorded and summarized in a period process. |
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Term
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Definition
| Liabilities for amounts incurred from purchases of products or services in the normal operations of a business. |
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Term
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Definition
| Receivables created by selling merchandise or services on credit. |
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Term
| Adequate disclosure concept |
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Definition
| An accounting concept that requires financial statements to include all relevant data a reader needs to understand the financial condition and performance of a business. |
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Term
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Definition
| The resources owned by a business. |
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Term
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Definition
| A list of the assets, liabilities, and owner’s equity as of a specific date, usually at the close of the last day of a month or a year. |
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Term
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Definition
| A type of long-term debt financing with a face amount that is in the future with interest that is normally paid semiannually. |
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Term
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Definition
| An organization in which basic resources (inputs), such as materials and labor, are assembled and processed to provide goods or services (outputs) to customers. |
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Term
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Definition
| An accounting concept that limits the economic data in the accounting system of a specific business or entity to data related directly to the activities of that business or entity. |
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Term
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Definition
| A person or entity who has an interest in the economic performance of a business. |
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Term
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Definition
| Types of stock a corporation may issue. |
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Term
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Definition
| The basic type of stock issued to stockholders of a corporation when a corporation has issued only one class of stock. |
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Term
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Definition
| A business organized under state or federal statutes as a separate legal entity. |
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Term
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Definition
| An accounting concept that determines the amount initially entered into the accounting records for purchases. |
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Term
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Definition
| Distributions of the earnings of a corporation to stockholders. |
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Term
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Definition
| Costs used to earn revenues. |
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Term
| Financial Accounting Standards Board (FASB) |
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Definition
| The authoritative body that has the primary responsibility for developing accounting principles. |
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Term
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Definition
| Financial reports that summarize the effects of events on a business. |
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Term
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Definition
| Business activities that involve obtaining funds to begin and operate a business. |
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Term
| Generally accepted accounting principles (GAAP) |
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Definition
| Rules for the way financial statements should be prepared. |
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Term
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Definition
| An accounting concept that assumes a business will continue operating for an indefinite period of time. |
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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 or a year. |
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Term
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Definition
| Long-lived assets that are useful in the operations of a business, are not held for sale, and are without physical qualities. |
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Term
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Definition
| A liability to pay interest on a due date. |
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Term
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Definition
| Business activities that involve obtaining the necessary resources to start and operate the business. |
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Term
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Definition
| The rights of creditors that represent a legal obligation to repay an amount borrowed according to terms of the borrowing agreement. |
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Term
| Limited liability corporation (LLC) |
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Definition
| A form of corporation that combines attributes of a partnership and a corporation in that it is organized as a corporation, but it can elect to be taxed as a partnership. |
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Term
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Definition
| Type of business that changes basic inputs into products that are sold to individual customers. |
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Term
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Definition
| An accounting concept that requires expenses of a period to be matched with the revenue generated during that period. |
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Term
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Definition
| A type of business that purchases products from other businesses and sells them to customers. |
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Term
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Definition
| The excess of revenues over expenses. |
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Term
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Definition
| The excess of expenses over revenues. |
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Term
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Definition
| A type of short or long-term financing that requires payment of the amount borrowed plus interest. |
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Term
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Definition
| An accounting concept that requires accounting records and data reported in financial statements be based on objective evidence. |
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Term
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Definition
| Business activities that involve using the business’s resources to implement its business strategy. |
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Term
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Definition
| The financial rights of the owner. |
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Term
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Definition
| A business owned by two or more individuals. |
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Term
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Definition
| Assets resulting from the prepayment of future expenses such as insurance or rent that are expected to become expenses over time or through the normal operations of the business; often called deferred expenses. |
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Term
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Definition
| A business owned by one individual. |
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Term
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Definition
| Net income retained in a corporation. |
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Term
| Retained earnings statement |
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Definition
| A summary of the changes in the retained earnings in a corporation for a specific period of time, such as a month or a year. |
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Term
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Definition
| The increase in assets from selling products or services to customers. |
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Term
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Definition
| A type of business that provides services rather than products to customers. |
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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, such as a month or a year. |
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Term
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Definition
| Investors who purchase stock in a corporation. |
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Term
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Definition
| The stockholders’ rights to the assets of a business. |
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Term
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Definition
| An accounting concept requiring that economic data be recorded in dollars. |
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