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Accounting Terms 1
Accounting Terms Unit 1
Question | Answer |
---|---|
Accountant | a person who plans, summarizes, 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 entity | financial information is recorded and reported separately from the owner's personal financial information |
Business ethics | the use of personal ethics in making business decisions |
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 tasks |
Going concern concept | financial statements are prepared with the expectation that a business will remain in operation indefinitely |
Historical cost | when the actual amount paid for merchandise or other items bought is 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 transaction |
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 ablility to keep personal matters confidential |