Essentials in Business

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  1. A device for recording the changes (increases or decreases in a fundamental accounting element.
  2. One who is concerned with the design of the system of records, the preparation of reports based upon the recorded data, and the interpretation of the reports.
  3. A launguage of business employed to communicate financial information based upon analyzing, recording, classification, summarization, reporting, and interpretation of financial data.
  4. Assets equl Liabilities plus Owner's Equity.
    Accounting Equation
  5. An unwritten promise by a customer to pay, at a later date, for goods sold or services rendered. "you are owed money"
    Accounts receivable
  6. Property of Monetary value owned by a business.
  7. One who is involved in the process of recording financial information in a prescribed manner.
    Bookkeeper (information processor)
  8. The recording of financial information in a prescribed manner.
  9. The amount by which the total assets exceed the total liabilities of a business; an owner's financial interest in a business.
    Capital (net worth; owner's equity; proprietorship)
  10. Coins, Currency (paper money), checks, credit cards receipts and money orders recieved from others, as well as money deposited in the bank.
  11. An individual possessing a college education, having practial experience in accounting and who has passed a comprehensive state examination in order to be certified to practice public accounting in that state.
    Certified Public Accountant / CPA
  12. A business or individual to whom a dept is owed.
  13. A decrease in assets, other than withdrawals by the owner, which results from efforts to produce revenues.
  14. An inflow of assets as a result of selling a product or providing a service.
    Income (revenue)
  15. Any debts that a business owes.
  16. Expenses incurred incurred in the normal operation of a business.
    Operating Expenses (overhead)
  17. Capital
    Owner's Equity
  18. A type of asset that will be consumed as it is used. (Examples: embalming supplies and office supplies)
  19. Any activity of a business enterprise that involves the exchange of values.
Card Set
Essentials in Business
Accounting Glossary Week 1
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