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39 terms

Survey of Accounting

STUDY
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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.