int accounting

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int accounting
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2010-05-23 16:14:16
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chapter int accounting
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  1. strict cash basis
    companies record only when they recieve cash, and they record expenses only when they disburse cash
  2. event
    a happening of consequence, which generally is the source or cause of changes in assets, liabilities, and equity. Events may be external or internal.
  3. accured revenues
    revenues earned but not yet recived in cash or recorded at the statement date. Results from the passing of time or from unbiled or uncollected services that a company perfomed
  4. account
    a systematic arrangemnt that shows the effect or transactions and other events on a specific element. Companies keed a separate account for each asset, liability, revenue, and expense, and for capital
  5. worksheet
    an informal device for accumulating and sourting information needed fro the fiancial statements. Typically provides columns for the 1st trial balance, adjustments, adjusted trial balance, income statement, and balance sheet. Completing the worksheet provides considerable assurance that a company properly handled all of the details related to the end of the period accounting statement preparation
  6. adjusting entry
    adjustments made at the end of the accounting period to ensure that a company has recorded revenues in which it earns them and recognize expenses in the period in which in incurrs them, following the revenue and expence recognition principles.
  7. Closing entries
    Journal entries made at the end of a companies annual accounting period to transfer the balances of temporary accounts to a perminant owners equity account.
  8. Posting
    The process of transferring the essential facts and figures from the book of original entries to the leger account, using debits and credits made to accounts.
  9. Special Journals
    Records of transaction possessing a common characteristic, such as cash reciepts, sales, purchases, cash payments. Reduces bookeeping time.
  10. Accrued Expenses
    Expenses incurred but not yet paid or recorded at the statement date.
  11. Double entry Accounting
    The unviersly accounting system in which a company records the dual affect of each transaction in appropriate accounts.
  12. Leger
    The book containing the accounts. A collection of all the assets, liability, owners equity, revenue, and expense account.
  13. Statement of retained Earnings
    Financial statement that reconsiles the balance of the retained earnings account from the beggining to the end of the period.
  14. Credit
    The right side of an account.
  15. Prepaid Expenses
    Assets paid for and recorded before a company uses them.
  16. Real Accounts
    Assets, liability, equity accounts; these accounts appear on the balance sheet. Companies do not close real accounts, also called perminent accounts.
  17. Debit
    The left side of an account.
  18. Reversing Entries
    Journal entries, made at the beggining of the next accounting period, that are the exact opposite of the adjusting entries made in the previous period. Optional accounting cycle.
  19. Accounting cycle.
    Standard set of accounting procedures to record transactions and prepare financial statements.
  20. General Leger
    A list of all companies assets, liability, stock holders equity, revenue, and expense accounts.
  21. Unearned Revenues
    Revenues received in cash and recorded as liabilities before a company earns them. Opposite of prepaid expenses.
  22. Transaction
    An external event involving a transfer or exchange between two or more entities.
  23. Statement of Cash Flows
    Financial statement that reports the cash provided and used by operating, investing, and financing activities during the period.
  24. Trial Balance
    The list of all open accounts, in the sequence in which they appear in the ledger, and their balances. It uncovers errors in jourlalizing and posting.
  25. Depreciation
    The process of allocating the cost of an asset to expense over its useful life in a rational and systemaitc manor.
  26. balance sheet
    financial statement that shows the financial condition of a company at the end of a period by reporting its assets, liabilities, and owners equity
  27. income statement
    financial statemnt that measures trhe result of operatins during a particular period and presents those results in terms of net income or net loss
  28. Closing process
    Accounting process at the end of an accounting period that reduces the balance of nominal accounts to zero in order to prepare the accounts for next periods transactions.
  29. Adjusted Trial Balance
    A trial balance prepared from a companies ledger accounts after journalizing and posting all adjusting entries. It shows the effects of all financial events that accured during the accounting period.
  30. Financial Statement
    The principal means through whcih a compnany communicates its financial information. These statements reflect the collections, tabulations, and final summarization of the accoutning data. The statements most frequently provded are (1) the balance sheet, (2) the income statement, (3) the statement of cashflows, and (4) the statement of owners or stockholders equity.
  31. Nominal Accounts
    Revenue, expense, and divided accounts; except for dividends, these accounts appear on the income statement.
  32. Book Value
    The difference between a depreciable assets costs and its related accumulated depreciation. It differs from market value because its a means of costs allocations not of valuation.
  33. Accounting Information System
    A system that collects and processes transaction data and then disseminates the financial information to interested parties.
  34. Journal
    The "book of original entries" where the company initially records transactions and other selected events. The company transfers that information from the journal to the ledger.
  35. T-accounts
    Basic account form, shapped like the letter T, that shows the effect of transactions on particular assets, liability, stockholders equity, revenue, and expense accounts.
  36. General Journal
    A complete record of a companies transactions for other financial events, listed chronologically and expressed in terms of debits and credits made to accounts.
  37. Post-closing Trial Balance
    The trial balance after closing entries are made; consists only of assets, liability, and owners stockholders accounts.
  38. Accural Basis
    The recognition of revenue when it is earned, and the expenses in the period incurred, without reguard to the time of the reciept or payment of cash.
  39. Modified Cash Basis
    A mixture of the accural basis and cash basis, with modifications that have substantial support, such as capitalizing and depreciating plant assets or recording inventory.
  40. Contra asset account
    An account that offsets an assets account on the balance sheet.

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