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unit 1 : accounting
glossary
Term | Definition |
---|---|
Accountant | a person who plans, summarized,analyzes, and interprets accounting information. |
Accounting | planning, recording, analyzing, and interpreting financial information. |
Accounting concepts | commonly accepted concepts that guide accounting personnel in their work. |
Accounting period cycle | changes in financial information are reported for a specific period of time in the form of financial statements. |
Adequate disclosure concept | financial statements contain all information necessary to understand a business financial condition |
Bookkeeper | a person who does general accounting work plus some summarizing and analyzing of accounting information |
Business entitly | financial information is recorded and reported separately from the owners personal financial information |
Business ethics | the use of personal ethics in making business decisions |
Certified Public Accountant (CPA) | designation by the american institute of certified public accountants for those who pass an exam and meet work experience requirements |
Consistent Reporting | the same accounting procedures must be followed in the same way in each accounting period |
Corporation | a legal entity that is separate and distinct from its owners |
Ethics | the principles of right and wrong that guide an individual in making decisions |
Ethical Business Practices | moral values and principles that determine our conduct in the business world |
General Office Clerk | a person who does general kinds of office tasks, including some accounting task. |
Going Concern Concept | financial statements are prepared with the expectations that a business will remain in operation indefinitely |
Historical cost | when the actual amount paid for merchandise or other items bought its recorded |
Honesty | the quality or fact of being honest ; truthfulness |
Integrity | adherence to moral and ethical principles ; soundness of moral character ; honesty |
Merchandising business | a business that purchases and sells goods |
Objective evidence | a source document is prepared for each transactions |
Partnership | a business in which two or more people combine their assets and skills |
Privacy | freedom from unauthorized intrusion ; state of being let alone and ability to keep personal matters confidential |
Realization of revenue | revenue is recorded at the time goods or service are sold |
Service Business | a business that preforms an activity for a fee |
Sole proprietorship | a business owned by own person |
Truthfulness | consistently telling the truth ; honest |
Unethical business practices | any activity that contradicts moral values and principles that determines our conducts in the business world |