Accounting chapter 1 vocabulary

  1. accounting
    the information system that identifies reords and communicates the eonomic events of an organization to intersted users
  2. assets
    resources a business owns
  3. balance sheet
    a finicial statement taht reports the assets liabilites andowners equity at a specific date
  4. basic acounting equation
    asset = liabilites + stockholders' equity
  5. bookkeeping
    a part of accounting taht involves only the recording of economic events
  6. corporation
    a business organization as a seperate legal entity under state corporation law, havingownership divided into transferable shares of stock
  7. cost priniple
    an accounting principle that states that ompanies should record assets of their cost
  8. dividend
    a distribution by a corporation to its stockholders on a pro rata (equal) bases
  9. Economic entity assumption
    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
  10. Ethis
    the standard of condut by whih one's ations are judged as right or wrong honest or dishonest, fair or not fair
  11. Expenses
    the ost of assets consumed or services used in the process of earning revenue
  12. Financial accounting
    the filed of accounting tha provides economic and finical information for investors, creditors and other external users
  13. Financial accounting standards board (FASB)
    a private organization that establishes generally accept acounting principles (GAAP)
  14. Generally accepted accounting princples (GAAP)
    common standards that indicate how to report economic events
  15. income statement
    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
  16. International acounting standards board (IASB)
    an accounting standard setting body that issues standards adopted by many countries outside of the U.S.
  17. Liabilites
    creditor claim on total asset
  18. Managerial accounting
    the field of acounting tha provides internal reports to help users make decisions about their companies
  19. Monetary unit assumption
    an assumption stating that companies include in the accounting records only transaction data that can be expressed in terms of money
  20. net income
    the amount by which revenues exceed expenses
  21. net loss
    the amount by which expenses exceed revenues
  22. partnership
    a business owned by two or more persons associated as partners
  23. proprietorship
    a business owned by two or more persons
  24. Retained earnings statement
    a finncial statement that summarizes the change in retained earnigns for a specific period of time
  25. Revenues
    the gross increase in owner's equality resulting from business activities entered into for the purpose of earning income
  26. Sarbanes Oxley Act of 2002 (SOX)
    law passed by ongress in 2002 intended to reduce unethical corporate behavior
  27. Securities and Exhange Commission (SEC)
    a governmental agency that requires companies to file finicial reports in acordance with generally acepted accounting principles
  28. Statement of cash flows
    a finncial statement that summarizes information about the ash inflows receipts) and ash outflows (payments) for a specific period of time
  29. stockholder's equity
    the ownership claim on a corporations total assets
  30. transaction
    the economi event of a business that are recorded by accountants
Card Set
Accounting chapter 1 vocabulary
chap 1 voab