Busy. Please wait.
Log in with Clever

show password
Forgot Password?

Don't have an account?  Sign up 
Sign up using Clever

Username is available taken
show password

Make sure to remember your password. If you forget it there is no way for StudyStack to send you a reset link. You would need to create a new account.
Your email address is only used to allow you to reset your password. See our Privacy Policy and Terms of Service.

Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.
Didn't know it?
click below
Knew it?
click below
Don't Know
Remaining cards (0)
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

  Normal Size     Small Size show me how

Accounting Ch1

Accounting chapter 1 terms

Accounting System that identifies success and failures.
Bookkeeping Recording Transactions and events manually or electronically.
Financial Accounting(Public accounting) Highest level is CPA(Certified public accountant)
Managerial accounting Serves as the decision
Ethics Beliefs that distinguish right from wrong.
Generally Accepted Accounting Principles(GAAP) Rules that govern how accountants measure process, and communicate financial info.
Financial Accounting Standards Board (FASB) A private sector group that sets both broad and specific principles.
Entity Concept Keep track of the business separate than the owners.
Reliability Principle(Objectivity) Account for transactions and events using measurable data.
Cost Principle Actual historical amount cost is measurable.
Going Concern Concept In operation for foreseeable future.
Stable/Monetary unity concept (Stable $) Assume purchasing power is relatively stable.
Realization Principle (Revenue Recognition) Record revenue as u earn it, not when cash comes in. Record expenses as the benefit is used up, not when the cash is paid.
Proprietorship A single owner
Partnership A business owned by 2 or more people.
Mutually Agency 1 partner can in debit all of the debt.
Corporation owned by stockholders
Assets Things that have future value that a company owns or controls.
Accounts Recievalbe The right to recieve money in the future b/c of something thats already been done.
Liabilities The obligation to do something or pay somebody in the future for something already recieved.
Accounts payable Obligation to pay someone in the future.
Accounting Equation Assets= Liabilities+ Equity
Unearned Revenue Obligation to do something.
Audit Examines whether financial statements are prepared using GAAP. It does not attest to absolute accuracy of the statements.
Auditiors Verify effectiveness of internal controls.
Balance Sheet describes a companys financital postion types, and amounts of assets, liablities and equity at a point in time.
Business Equity Assumption A buesiness is accounted for separately from other business entities including its owner.
Common Stock (Capital Stock) When a corporation issues only one class of stock.
Conceptual framework and covergence guide toward standard setting consist of: Objectives,Qualitative Characteristics, Elements,Recognition and measurement
Objectives Provide infor useful to investors, creditors and others
Equity The owner's claim on assets
Events Happenings that affect the accounting equation and are reliable measured.
Expanded Accounting Equation Assets=Liabilities + Owner capital,subt Owner withdrawals, +Revenues subt Expenses
Expense recognition principle ( Matching principle) A company record the expenses it incurred to generate the revenue reported.
Expenses Cost necessary to earn revenues (Ex: cost of staffing, advertising, insurance services, use of supplies and utilites).
External transactions Exchange of value between to entities, which yeild changes in the accounting equation. (Ex: Sale of Ad space by facebook).
Internal transactions Exchanges w/in an entity, which may or may not affect the accounting equation. (Ex: facebook use of suppiles
External users Shareholders(investors), lenders, directors, customers supplies, regulators, lawyers, brokers, and the press. Users of accounting info not directly involved wit the running organization.
Full disclosure principle A company reports the details behind financial statements that would impact user decisions.
Income Statement Describes a company's Revenues, & Expenses along with the resulting Net income or loss over a period of time due to earning activities.
Internal users Those directly involved in managing & operating an organization.
International Accounting Standards An independent group (consisting of individuals from many countries), issues International Financial Reporting Standards.
International Financial Reporting Standards Identify perferred accounting practices.
Material Constraints Only information that would influence the decsions of a reasonable person need to be disclosed.
Measurement/Cost principle Accounting info is based on actual cost.
Monetary unit assumption We can express transactons & events in monetary, or money/units.
Net Income When revenues exceeds expenses.
Net loss Occurs when expenses exceed revenues which decreases equity.
Owner Capital Owner investments.
Owner investments Assets an owner puts into the company & are included under the general account Owner Capital.
Owner Withdrawls Assets an owner takes from the company for personal use.
Partnership A business owned by 2 or more people.
Proprietorship A business owned by one person.
Recordkeeping The recording of transactions & events, either manually or electronical.
Return Monies recieved from an investment; often in percent forms.
Return on total assets Ratio reflecting operating effiency, defined as net income divided by average total assets for the period.
Return recognition principle Prescribing that revenue is recognized when earned.
Revenues Gross increase in equity from a company's business activities that earn income also called sales.
Risk Uncertainity about an expected return.
Sarbanes Oxley Act(SOX) Created public company accounting oversight board, regulates analyst conflicts, imposes corporate goverance requirements, enhances accounting & control disclosures, impacts insider transactions & executive loans, establishes new types of criminal conduct.
Securities & exchange Federal agency congress has charged to set reporting rules for organization that sell ownerships shares to the public.
Shareholders Owners of a corporation.
Shares Equity of a corporation divided into ownership units.
Sole Propretorship Business owned by 1 person.
Statement of Cash flows A financial statement that lists cash in flows recipts & cash outlaws during a period arranged by operating , investing & financing.
Statement of Owner's equity Report of changes in equity over a period. Adjusted for increases (owner investment & net income) & for decreases, withdrawls, and net loss.
Time period Assumption Assumption that an organizations activitie can be divided into specific time periods such as months, quarters or years.
Withdrawls Payment of cash or other assets from a proprietorship or partnership to its owner or owners.
Objectives Provide info useful to investors, creditors and others.
Created by: Posiniv01
Popular Accounting sets




Use these flashcards to help memorize information. Look at the large card and try to recall what is on the other side. Then click the card to flip it. If you knew the answer, click the green Know box. Otherwise, click the red Don't know box.

When you've placed seven or more cards in the Don't know box, click "retry" to try those cards again.

If you've accidentally put the card in the wrong box, just click on the card to take it out of the box.

You can also use your keyboard to move the cards as follows:

If you are logged in to your account, this website will remember which cards you know and don't know so that they are in the same box the next time you log in.

When you need a break, try one of the other activities listed below the flashcards like Matching, Snowman, or Hungry Bug. Although it may feel like you're playing a game, your brain is still making more connections with the information to help you out.

To see how well you know the information, try the Quiz or Test activity.

Pass complete!
"Know" box contains:
Time elapsed:
restart all cards