ACCT chapter 1
Terms in this set (18)
difference between revenues and expenses
stockholders', or owners', claims to resources, which equal the difference between total assets and total liabilities
costs of providing products and services
equation the shows a company's resources (assets) equal creditor's and owner's claims to those resources (liabilities and stockholders' equity)
trained individuals hired by a company as an independent party to express a professional opinion of the accuracy of that company's financial statements
amounts owed to creditors
all economic events with a particular economic entity can be identified
economic entity assumption
cash payments to stockholders.
in the absence of information to the contrary, a business entity will continue to operate indefinitely.
going concern assumption
resources owned by a company
a business owned by a single person
cumulative amount of net income earned over the life of the company that has not been distributed to stockholders as dividends
business owned by two or more persons
an entity that is legally separate form its owners
the economic life of an enterprise (presumed to be indefinite) can be divided into artificial time periods for financial reporting
a unit or scale of measurement can be used to measure financial statement elements.
monetary unit assumption
amounts earned from selling products or services to customers
the impact of financial accounting information on investors' and creditors' decisions.