Term
|
Definition
| Describes a company's revenues and expenses along with net loss/income over a period of time |
|
|
Term
| Statement of Owners Equity |
|
Definition
| How total equity changes from the beginning of the period of time to the end |
|
|
Term
|
Definition
| Describes a company's financial position at a POINT IN TIME |
|
|
Term
|
Definition
| Only going to report cash inflows and cash outflows |
|
|
Term
|
Definition
Gross increase in equity from a company's business activities that earn income
Also called 'sales' |
|
|
Term
|
Definition
| Outflows or using up of assets as part of operations of a business to generate sales |
|
|
Term
|
Definition
Resources a business owns or controls that are expected to provide current and future benefits to the business
Something we own or control and provides full benefit |
|
|
Term
|
Definition
Creditors claims on an organizations assets;
Involves a probable future payment of assets, products, or services that a company is obligated to make due to past transactions |
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
| information and measurement system that identifies, records, and communicates relevant, reliable, and comparable information about an organizations business activities |
|
|
Term
|
Definition
| Assets = Liabilities + Equity |
|
|
Term
| Accounting Equation expanded |
|
Definition
| Assets = Liabilities + Equity (Owners C, - Owners W, + revenues - expenses) |
|
|
Term
|
Definition
| Recording of transactions and events, either manually or electronically |
|
|
Term
|
Definition
Owners claim on assets, and is equal to assets - liabilities.
Also called 'net assets' |
|
|
Term
|
Definition
| Accounting information is based on actual cost |
|
|
Term
| Revenue Recognition Principle |
|
Definition
| Have to provide product or service in order to record revenue |
|
|
Term
|
Definition
| When an asset is used, expenses are recorded when revenue was recorded |
|
|
Term
| Full Disclosure Principle |
|
Definition
| Need to fully disclose any info that makes making a decision easier |
|
|
Term
|
Definition
| Business owned by one person |
|
|
Term
|
Definition
| Business owned by two or more people |
|
|
Term
|
Definition
Business legally separate from its owners
Pays for its own taxes |
|
|
Term
|
Definition
Decrease asset, increase expense
Resources paid for prior to receiving benefits |
|
|
Term
|
Definition
Decrease liability, Increase revenue
Cash received before providing services |
|
|
Term
|
Definition
Increase expense, Increase liability
Costs incurred in a period that are both unpaid and unrecorded. |
|
|
Term
|
Definition
Increase revenue, Increase asset
Revenues earned in a period that are both unrecorded and not yet received. |
|
|
Term
|
Definition
Debits
Assets
Withdrawals
Expenses |
|
|
Term
Credits increase with
CRIL |
|
Definition
Credits
Revenues
Investments by owners
Liabilities |
|
|
Term
|
Definition
Large companies are required to use this
Revenues are recognized when earned and expenses are recognized when incurred. |
|
|
Term
|
Definition
Small companies use this, not accepted by GAAP
Revenues are recognized when cash is received and expenses are recorded when cash is paid. |
|
|
Term
Adjusting entry
Paid/received cash BEFORE expense/revenue is recognized |
|
Definition
Prepaid expenses
Unearned revenues |
|
|
Term
Adjusting entry
Paid/received cash AFTER expense/revenue is recognized |
|
Definition
Accrued expenses
Accrued revenues |
|
|
Term
|
Definition
Reduce asset with credit
Increase expense with debit |
|
|
Term
| Prepaid expenses, such as prepaid rent, are accounted for as |
|
Definition
|
|
Term
|
Definition
Increase expense (depreciation expense)
Decrease asset (accumulated depreciation) |
|
|
Term
|
Definition
Cash has already been received
Increase the revenue by crediting
Decrease the liability by debiting |
|
|
Term
|
Definition
Increase the expense by debiting
If job isn't done, increase the liability by crediting |
|
|
Term
|
Definition
| Summary of increases and decreases to the type of asset, liabilities, revenue, or expense accounts |
|
|
Term
|
Definition
| Record containing all accounts for a company |
|
|
Term
|
Definition
Always an asset
Somebody hasn't paid me yet |
|
|
Term
|
Definition
| Purchased items from vendor but haven't paid for it |
|
|
Term
|
Definition
| Customer has paid for item but hasn't received it |
|
|
Term
|
Definition
| Cost I have occurred providing service to my customers |
|
|
Term
| Normal Balance: Office Supplies |
|
Definition
Assets - Debit
When supplies are used, turns into expense account |
|
|
Term
| Normal Balance: Cash Withdrawal, Owner |
|
Definition
|
|
Term
| Normal Balance: Fees Earned |
|
Definition
|
|
Term
| Normal Balance: Wages Expense |
|
Definition
|
|
Term
| Normal Balance: Accounts Receivable |
|
Definition
Assets - Debit
Increased by credit sales
Decreased by customer payments |
|
|
Term
| Normal Balance: Prepaid Rent |
|
Definition
|
|
Term
| Normal Balance: Wages Payable |
|
Definition
|
|
Term
|
Definition
|
|
Term
| Normal Balance: Owners Capital |
|
Definition
|
|
Term
| Decreases Normal Balance: Service Revenue |
|
Definition
|
|
Term
| Decreases Normal Balance: Interests Payable |
|
Definition
|
|
Term
| Decreases Normal Balance: Accounts Receivable |
|
Definition
|
|
Term
| Decreases Normal Balance: Salaries Expense |
|
Definition
|
|
Term
| Decreases Normal Balance: Owners Capital |
|
Definition
|
|
Term
| Decreases Normal Balance: Prepaid Insurance |
|
Definition
|
|
Term
| Decreases Normal Balance: Buildings |
|
Definition
|
|
Term
| Decreases Normal Balance: Interest Revenue |
|
Definition
|
|
Term
| Decreases Normal Balance: Owner Withdrawals |
|
Definition
|
|
Term
| Decreases Normal Balance: Unearned Revenue |
|
Definition
|
|
Term
| Decreases Normal Balance: Accounts Payable |
|
Definition
|
|
Term
| Decreases Normal Balance: Land |
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
| To increase office expense |
|
Definition
|
|
Term
|
Definition
|
|
Term
| To decrease unearned revenue |
|
Definition
|
|
Term
|
Definition
|
|
Term
| To increase notes payable |
|
Definition
|
|
Term
| To decrease accounts payable |
|
Definition
|
|
Term
| To increase owners capital |
|
Definition
|
|
Term
| To increase store equipment |
|
Definition
|
|
Term
| To record expiration of prepaid insurance |
|
Definition
| Prepaid Expense (Increase expense by debit, decrease asset by credit) |
|
|
Term
| To record revenue earned but not yet billed |
|
Definition
| Accrued Revenue (Increase revenue by credit, increase asset by debit) |
|
|
Term
| To record wages expense incurred but not yet paid |
|
Definition
| Accrued Expenses (Increase expense by debit, increase liability by credit because not yet paid) |
|
|
Term
| To record annual depreciation |
|
Definition
| Prepaid Expense because you have to pay for long term asset before using up (increase expense by debit, decrease asset by credit) |
|
|
Term
| To record revenue earned that was previously received as cash in advance |
|
Definition
| Unearned Revenue (increase revenue by credit, decrease liability by debit) |
|
|
