accounting vocabulary

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zippypinguini
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accounting vocabulary
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2010-07-16 14:17:17
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Vocabulary for Chapter One of Accounting 1800
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  1. Account Payable


    page 15
    A liability backed by general reputation and credit standing of the debtor.
  2. Account Receivable


    page 15
    A promise to receive cash from customers to whom the business has sold goods or for whom the business has performed services
  3. Accounting


    page 2
    The information system that measures business activities, processes that information into reports, and communicates the results to decision makers.
  4. Accounting Equation




    page 10
    The basic tool of accounting, measuring the resources of the business and the claims to those resources:

    Assets = Liabilities + Owner's Equity.
  5. Asset



    page 5
    An economic resource that is expected to be of benefit in the future.
  6. Audit



    page 4
    An examination of a company's financial situation.
  7. Balance Sheet




    page 28
    An entity's assets, liabilities, and owner's equity of a specific date. Also called the Statement of Financial Position.
  8. Capital




    page 11
    Representation of ownership investment by an owner of a proprietorship.
  9. Certified Management Accountant (CMA)




    Page 4
    A licensed accountant who works for a single company.
  10. Certified Public Accountants (CPAs)




    Page 4
    Licensed accountants who serve the general public rather than one particular company.
  11. Corporation




    Page 6
    A business owned by stockholders. A corporation begins when the state approves its articles and the first share of stock has been issued. It is a legal entity, an "artificial person," in the eyes of the law.
  12. Cost principle



    Page 9
    A principle that states that acquired assets, and services should be recorded at their actual cost.
  13. Creditor




    page 3
    Someone to whom a business owes money.
  14. Entity




    Page 9
    An organization or a section of an organization that, for accounting purposes, stands apart from other organizations and individuals as a seperate economic unit.
  15. Equity





    page 10
    The claim of a proprietorship's owner to the assets of the business.

    Also called Owner's Equity.
  16. Expenses





    page 12
    Decrease in equity that occurs from using assets or increasing liabilities in the course of delivering goods or services to customers.
  17. Financial Accounting




    Page 3
    The branch of accounting that focuses on information for people outside the firm.
  18. Financial Accounting Standards Board (FASB)





    page 4
    The private organization that determines how accounting is practed in the United States.
  19. Financial Statements





    Page 18
    Documents that report on a business in monetary amounts, providing information to help people make informed business decisions.
  20. Generally Accepted Accounting Principles (GAAP)





    Page 4
    Accounting guidelines, formulated by the Financial Accounting Standards Board, that govern how accountants measure, process, and communicate financial information.
  21. Going-Concern Concept




    Page 10
    This concept assumes that the entity will remain in operation for the forseeable future.
  22. Income Statement




    Page 20
    Summary of an entity's revenues, expenses, and net income or net loss for a specific period. Also called the Statement of Earnings or Statement of Operation.
  23. Liabilities




    Page 10
    Economic obligations (debts) payable to an individulal or an organization outside the business.
  24. Limited-Liability Company





    Page 6
    Company in which each partner is only liable for his or her own actions or those under his or her control.
  25. Limited-Liability Partnership




    Page 6
    Company in which each partner is only liable for his or her own actions or those under his or her control.
  26. Management Accounting




    Page 3
    The branch of accounting that focuses on information for internal decision makers of a business
  27. Mutual Agency



    Page 8
    The ability of partners in a partnership to commit other partners and the business to a contract.
  28. Net Income




    Page 12
    Excess of total revenues over total expenses. Also called Net Earnings or Net Profit.
  29. Net Loss



    Page 12
    Excess of total expenses over total revenues.
  30. Objectivity Principle




    Page 9
    Principal that asserts that data are verifiable and objective. Also called the Reliablility Principle.
  31. Owner's Equity




    Page 10
    The claim of an owner to the assts of the business.
  32. Partnership




    Page 6
    A business with two or more owners that is not organized as a corporation.
  33. Proprietorship



    Page 6
    A business with a single owner.
  34. Reliablility Principle




    Page 9
    Principle that asserts that data are verifiable and objective. Also called the Objectivity Principle.
  35. Revenue




    Page 11
    Amounts earned by delivering goods or services to customers. Revenues increase retained earnings.
  36. Shareholder




    Page 6
    A person who owns stock in a corporation.
  37. Stable Monetary Unit Concept




    Page 10
    The concept that says that accountants assume that the dollar's purchasing power is stable.
  38. Statement of cash flows




    page 20
    Report of cash receipts and cash payments during a period.
  39. Statement of Earnings




    Page 21
    Summary of an entity's revenues, expenses, and net income or net loss for a specific period. Also called the Income Statement or the Statement of Operations
  40. Statement of Financial Position



    page 21
    An entity's assets, liabilities and owner's equity as of a specific date.

    Also called the balance sheet
  41. Statement of Operations



    Page 21
    Summary of an entity's revenues, expenses, and net income or net loss for a specific period. Also called the income statemetn or statement of earnings.
  42. Statement of Owner's Equity





    page 18
    Summary of the changes in an owner's capital account during a specific period.
  43. Stock





    page 7
    A document indicating ownership of a corporation. The holders of stock are called Stockholders or Shareholders.
  44. Stockholder



    page 6
    a person who owns stock in a corporation

    Also called a shareholder
  45. Stockholder's Equity



    page 12
    The claim of a corporation's owners to the assets of the business.

    Also called owner's equity or shareholder's equity.
  46. Transaction




    Page 13
    An event that affects the financial position of a particular entity and can be measured and recored reliably.

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