Create an account
a record summarizing all the information pertaining to a single item in the accounting equation.
The series of accounting activities included in recording financial information for a fiscal period.
An equation showing the relationship among assets, liabilities, and owner's equity.
Accounting Period Cycle Concept
changes in financial information are reported for a specific period of time in the form of financial statements.
a planned process for providing financial information that will be useful to management.
Adequate Disclosure Concept
financial statements that contain all information necessary to understand a business's financial condition.
Journal entries recorded to update general ledger accounts at the end of a fiscal period.
changes recorded on a work sheet to update general ledger accounts at the end of a fiscal period.
a financial statement that reports assets, liabilities, and owner's equity on a specific date.
Business Entity Concept
financial information is recorded and reported separately from the owner's personal financial information.
Consistent Reporting Concept
the same accounting procedures are followed in the same way in each accounting period.
The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current.
Going Concern Concept
financial statements are prepared with the expectation that a business will remain in operation indefinitely.
Matching Expenses With Revenue Concept
revenue from business activities and expenses associated with earning that revenue are recorded in the same accounting period.
the amount remaining after the value of all liabilities is subtracted from the value of all assets.
accounts used to accumulate information until it is transferred to the owner's capital account.
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