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Definition
| the form of balance sheet that resembkes the basic format of the accounting equation, with assets on the left side and the Liabilities and Stockholders' Equity sections on the right side. |
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| the liability created by a purchase on account. |
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| a claim against the customer created by selling merchandise or services on credit |
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Definition
| an information system that provides reports to users about the economic activities and condition of a business |
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Definition
| Assests = Liabilities + Owner's Equity. |
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Definition
| the resources owned by a business |
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Definition
| a list of the assests, liabilities, and stockholders' equity as of a specific date, usually at the close of the last day of a month or a year. |
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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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Definition
| a concept of accounting that limits the economic data in the accounting systwem to data related directly to the activites of the business. |
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Definition
| an economic event or condition that directly changes an entity's financial condition or directly affects its results of operations. |
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Term
| Certified Public Account (CPA) |
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Definition
| public accountatns who have met a state's education, experience, and examination requirements. |
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Definition
| the stock outstanding when a corporation has issued only one class of stock |
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Definition
| a business organized under state or federal statues as a separate legal entity. |
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Definition
A concept of accounting that determines the amount initially entered into the accounting records for purchases.
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Definition
The amount by which revenues exceed expenses. |
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Definition
Moral principles that guide the conduct of individuals. |
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Definition
Assets used up or services consumed in the process of generating revenues. |
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Definition
Revenue from providing services. |
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Term
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Definition
The branch of accounting that is concerned with recording transactions using generally accepted accounting principles (GAAP) for a business or other economic unit and with a periodic preparation of various statements from such records.
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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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general-purpose financial statements |
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Definition
A type of financial accounting report that is distributed to -external users. The term ?general purpose? refers to the wide range of decision-making needs that the reports are designed to serve. |
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generally accepted accounting principles (GAAP) |
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Definition
Generally accepted guidelines for the preparation of financial statements. |
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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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Definition
Money received for interest. |
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Term
International Accounting Standards Board (IASB) |
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Definition
An organization that issues International Financial Reporting Standards for many countries outside the United States. |
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Definition
The rights of creditors that represent debts of the business. |
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Term
limited liability company (LLC) |
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Definition
A business form consisting of one or more persons or entities filing an operating agreement with a state to conduct business with limited liability to the owners, yet treated as a partnership for tax purposes. |
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management (or managerial) accounting |
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Definition
The branch of accounting that uses both historical and estimated data in providing information that management uses in conducting daily operations, in planning future operations, and in developing overall business strategies. |
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Definition
A type of business that changes basic inputs into products that are sold to individual customers. |
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matching concept (or matching principle) |
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Definition
A concept of accounting in which expenses are matched with the revenue generated during a period by those expenses. |
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Definition
A type of business that purchases products from other businesses and sells them to customers. |
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Definition
The amount by which revenues exceed expenses. |
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Definition
The amount by which expenses exceed revenues. |
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Term
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Definition
A concept of accounting that requires accounting records and the data reported in financial statements to be based on objective evidence. |
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Term
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Definition
The owner's right to the assets of the business. |
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Definition
An unincorporated business form consisting of two or more persons conducting business as co-owners for profit. |
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Definition
Items such as supplies that will be used in the business in the future. |
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Definition
The field of accounting whereby accountants are employed by a business firm or a not-for-profit organization. |
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Definition
The difference between the amounts received from customers for goods or services provided and the amounts paid for the inputs used to provide the goods or services. |
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Definition
A business owned by one individual. |
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Definition
The field of accounting where accountants and their staff provide services on a fee basis. |
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Term
Public Company Accounting Oversight Board (PCAOB) |
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Definition
A new oversight body for the accounting profession that was established by the Sarbanes-Oxley Act. |
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ratio of liabilities to owner's (stockholders') equity |
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Definition
A comprehensive leverage ratio that measures the relationship of the claims of creditors to stockholders' equity. |
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Term
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Definition
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Term
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Definition
Net income retained in a corporation. |
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retained earnings statement |
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Definition
A summary of the changes in the retained earnings that have occurred during a specific period of time, such as a month or a year. |
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Term
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Definition
Increases in assets and stockholders' equity from performing services or delivering products to customers. |
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Term
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Definition
The total amount charged customers for merchandise sold, including cash sales and sales on account. |
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Term
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Definition
An act passed by Congress to restore public confidence and trust in the financial statements of companies. |
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Term
Securities and Exchange Commission (SEC) |
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Definition
An agency of the U.S. government that has authority over the accounting and financial disclosures for companies whose shares of ownership (stock) are traded and sold to the public. |
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Definition
A business providing services rather than products to customers. |
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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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Definition
The stockholders' right to the assets of the business. |
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Term
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Definition
A concept of accounting requiring that economic data be recorded in dollars. |
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