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Created by:
kentrevious on October 29, 2010
Subjects:
Description:
vocabulary
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30 terms
Terms | Definitions |
|---|---|
 accounting period | A period of time covered by an accounting report |
| accounting system | designed to collect, document, and report on financial transactions affecting the business. |
| business entity | Exists independently of its owner's personal holdings; The accounting records and reports are maintained separately and contain financial information related only to the business |
| capital | money that investors, banks, or business owners supply |
| charter | gives a corporation certain rights and privileges |
| computerized accounting system | the financial information is recorded by entering it into a computer |
| corporation | a business recognized by law to have a life of its own |
| entrepreneur | a person who transforms ideas for products or services into real-world businesses. |
| financial accounting | Accounting information and analyses prepared for people outside the organization. |
| financial reports | summarized info about the financial status of a business |
| accounting equation | Assets = Liabilities + Owner's Equity |
| accounts payable | Thte amount of money owed, or payable, to the creditors of a business. |
| accounts receivable | The total amount of money owed to a business. |
| assets | property or items of value owned by a business |
| business transaction | an economic event that causes a change in assets, liabilities, or owners equity |
| expense | the cost of products or services used to operate a business |
| financial claim | A legal right to an item. |
| investment | money or other property paid out in order to produce profit |
| property | anything of value that is owned or controlled |
| withdrawal | the removal of cash or another asset from the business by the owner for personal use. |
| credit | An amount recorded on the right side |
| debit | an entry on the left side of an account |
| normal balance | An account balance on the side where an increase in the account is recorded. |
| liabilities | the creditor's claims to the assets of the business |
| owner's equity | the owners claims to the assets of the business |
| going concern | the accounting assumption that a business is expected to operate indefinitely |
| loss | when a business's expenses are more than its revenues |
| property rights | The rights of an individual to own, use, rent, invest in, buy, and sell property. |
| sole proprietorship | business owned by one person |
| GAAP | Generally Accepted Accounting Principles |
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