Accounting Final

  1. Account
    A device for recording the changes (increases or decreases) in the fundamental accounting elements.
  2. Account Balance
    The difference between the total debits and the total credits in an account.
  3. Accounting
    A language of business employed to communicate financial information based upon analyzing, recording, classification, summarization, reporting and interpretation of financial data.
  4. Accounting Cycle
    The process involved in journalizing, posting to the ledger, taking a trial balance, preparing statements, making adjusting entries, and preparing a post-closing trial balance.
  5. Accounting equation
    Assets = Liabilities + Owner's Equity
  6. Accounts Payable
    An unwritten promise to pay creditors for property, such as merchandise, supplies or equipment, purchased on credit, or for services rendered.
  7. Accounts Receivable
    An unwritten promise by a customer to pay, at a later date, for goods sold or services rendered.
  8. Accrual Accounting
    Recording in each fiscal period applicable expenses, whether paid or not, and income earned, whether collected or not.
Card Set
Accounting Final
Accounting Final, Vocabulary