Accounting 1: Chapter 1

The information system that identifies, records, and communicates the economic events of an organization to interested users

Resources a business owns

Assets= Liabilities + Owner's Equity

A part of accounting that involves only the recordiung of economic events

A financial statement that reports the asets, liabilities, and owner's equity ata specific date

A business organized as a separate legal entity under state corporation law, having ownership divided into transferable shares of stock

An accounting principle that states that companies should record assets at their cost

Withdrawal of cash or other assets from an unincorporated business for the personal use of the owner(s)

An asssumption that requires that the activites of the entity be kept separate and distinct from the activities of its owner and all other economic entities

The standards of conduct by which one's actions are judged as right or wrong, honest or dishonest, fair or not fair

The cost of assets consumed or services used in the process of earning revenue

The field of accounting that provides economic and financial information for investors, creditors, and other external users

A private organization that establishes generally accepted accountant principles (GAAP)

Common standards that indicate how to report economic events

A financial statement that presents the revenues and expenses and resulting net income or net loss of a company for a specific period of time

An accounting standard-setting body that issues standards adopted by many countries outside of the United States

The assets an owner puts into the business

Creditor claims on total assets

The field of accounting that provides internal reports to help users make decisions about their companies

An assumption stating that companies include in the accounting records only transaction data that can be expressed in terms of money

The amount by which revenues exceed expenses

The amount by which expenses exceed revenues

The ownership claim on total assets

A financial statement that summarizes the changes in owners equity for a specific period of time

A business owned by two or more persons asssociated as partners

A business owned by one person

The gross increase in owner's equity resulting from business activities entered into for the purpose of earning income

Law passed by Congress in 2002 intended to reduce unethical corporate behavior

A government agency that requires companies to file financial reports in accordance with generally accepted accounting principles

A financial statement that summarizes information about the cash inflows (receipts) and cash outflows (payments) for a specific period of time

The economic events of a business that are recorded by accountants