Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
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
Normal Size Small Size show me how
Exam 1
ACC 117
| Term | Definition |
|---|---|
| Users of accounting information | owners, managers, creditors, government agencies |
| owners | company's profitability and current financial condition |
| managers | detailed measures of business performance |
| creditors | company's profitability, debt outstanding, and assets that could be used to secure debt |
| government agencies | company's profitability, cash flows, and overall financial condition |
| accounting process | analyzing, recording, classifying, summarizing, reporting, and interpreting |
| analyzing | look at events that have taken place and thinking about how they affect the business |
| recording | entering financial about events into the accounting system |
| classifying | sorting and grouping similar items together rather than merely keeping a simple, diary-like record of numerous events |
| summarizing | aggregation of many similar events to provide information that is easy to understand |
| reporting | telling the results |
| interpreting | deciding the meaning and importance of the information in various reports |
| GAAP | procedures and guidelines developed by the Financial Accounting Standards Board to be followed in the accounting and reporting process |
| Types of ownership stuctures | sole proprietorship, partnership, corporation |
| sole propietorship | one owner, assumes all risks, makes all decisions |
| partnership | two or more owners, share risks, may disagree on how to run business |
| corporation | stockholders, limited risk, have little influence on business decisions |
| service business | business that provides a service Ex: travel agency, computer consultant, physician |
| merchandising business | business that buys a product to sell Ex: department store, pharmacy, grocery store |
| manufacturing business | business that makes a product to sell Ex: automobile manufacturer, furniture maker, toy factory |
| business entity | individual, association, organization, that engages in economic activities and controls specific economic resources |
| fiscal year | an accounting period of 12 months' duration |
| basic accounting elements | assets, liabilities, owners equity |
| assets | items that are owned by a business and will provide future benefits Ex: accounts receivable |
| liabilities | represent something owed to another business entity Ex: account payable |
| owners equity | amount by which the business assets exceed the business liabilities Ex: capital |
| accounting equation | assets= liabilities + owners equity |
| basic phases of accounting | input, processing, output |
| input | business transactions |
| processing | recognizing the effect of these transactions |
| output | financial statements |
Created by:
anichols23
Popular Accounting sets