Accounting chapter 1 vocabulary

the information system that identifies reords and communicates the eonomic events of an organization to intersted users

resources a business owns

a finicial statement taht reports the assets liabilites andowners equity at a specific date

asset = liabilites + stockholders' equity

a part of accounting taht involves only the recording of economic events

a business organization as a seperate legal entity under state corporation law, havingownership divided into transferable shares of stock

an accounting principle that states that ompanies should record assets of their cost

a distribution by a corporation to its stockholders on a pro rata (equal) bases

an assumption that requires that the activites of the entity be kept seperate and distinct from the ativies of its owners and all other economic entities

the standard of condut by whih one's ations are judged as right or wrong honest or dishonest, fair or not fair

the ost of assets consumed or services used in the process of earning revenue

the filed of accounting tha provides economic and finical information for investors, creditors and other external users

a private organization that establishes generally accept acounting principles (GAAP)

common standards that indicate how to report economic events

a finical statement that presents the revenues and expenses and resulting net income or net loss of a copany for a specific period of time

an accounting standard setting body that issues standards adopted by many countries outside of the U.S.

creditor claim on total asset

the field of acounting tha 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

a business owned by two or more persons associated as partners

a business owned by two or more persons

a finncial statement that summarizes the change in retained earnigns for a specific period of time

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

law passed by ongress in 2002 intended to reduce unethical corporate behavior

a governmental agency that requires companies to file finicial reports in acordance with generally acepted accounting principles

a finncial statement that summarizes information about the ash inflows receipts) and ash outflows (payments) for a specific period of time

the ownership claim on a corporations total assets

the economi event of a business that are recorded by accountants