Survey of Accounting

39 terms by KellieTom

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Sole Proprietorship

A type of business ownership that has one owner. The owner is personally liable for paying the business's debts.

Supplies

One type of assets acquired by a firm: it has a much shorter life thatn equipment.

Statement of Financial Position

Another name ofr a balance sheet.

Service Company

Business that provides a service.

Revenue

An amount earned by performing services for customers or selling goods to customers; it can be in the form of cash or account receivable. A subdivision of OE; As revenue increase OE decrease.

Statement of Owner's Equity

Financial statement that reveals the change in capital. The ending figure for chapital is then placed on the balance sheet.

Withdrawals

A subdivision of owner's equity that records money or other assets an owner withdraws from a business for personal use.

Partnership

A form of business organization that has at least two owners. The partners usually are personally liable for the partnership's debts.

Shift in Assets

A shift that occurs when the composition of the assets has changed but the total of the assets remains the same.

Merchandise business

Where a company makes a prophet from goods that they did not make. Example: Belks JCPenny

Corporation

Stockholders who own a part or bond of a business.

Accounting

A system that measrues the business's activities in finacial terms, provides written reports and financial statements about htose activities and communiicates these reports to decision makers and others.

Accounts Payable

Amounts owed to creditors that result from the purchase of good or services on account - a liability

Accounts Receivable

An asset that indicates amounts owned by customers.

Assets, owner's equity, liability (formula)

Assets= liability+owner's equity

Creditor

Someone who has a claim to assets.

Ending Capital

Beginning captial+ Additional investment+ Net Income - Withdrawals= Ending Capital or: Beginning Cap+Additional investments-Net Loss-Withdrawals=Ending Investments

Liabilities

Creditors

Equities

Business or a person who has the right ot have the assets, claims, and say-so .

Assets

Things of great value

Manufacturing Business

Where a company who sells their own goods that they made. Example: Ford Hershy

Expense

A cost incurred in running a business by ansuming goods or services in producing revenue; a subdivision of owner's equity. When expenses increase, there is a decrease in owner's equity.

Liabilities

Obligations that become due in the future. Liabilites result in increasing the financial rights or claims of creditors to assets.

Manufacturer

Business that makes a product and sells it to its customers.

Expanded Accounting Equation

Assets=Liabilities+Capital-Withdrawals+Revenue-Expenses

Equities

The interest or financial claim of creditors (liabilities) and owner's equity who supply the assets to a firm.

Net Income

When revenue total more than expenses, the result is net income.

Owner's Equity

Rights or financial claims to the assets of a business (in the accounting equation, assets minus liability)

Income Statement

An accounting statement that details the performance of a firm (revenue minus expenses) for a specific period of time.

Generally Accepted Accounting Principles

The procedures and guideliens taht must be follwed during the accounting process.

Book keeping

The recording function of the accounting process.

Balance Sheet

A statement, as of a particular date, that shows the amount of assets owned by a business as well as the amount of claims (liabilities and owner's equity) against these assets.

Basic Accounting Equation

Assets= liabilities+owner's equity

Assets

Properties (resources) of value owned by a business (cash, supplies, equipment, and land)

Capital

The owner's investment of equity in the company

Corporation

A type of business organization that is owned by stock holders. Stockholders usually are not personally liable for the corporation's debts.

Partnership

When two or more people share a business

Merchadise company

Business that buys a product from a manufacturing company to sell to its customers.

Net Loss

When expenses total more than revenue, the result is net loss.

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