Term
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Definition
| DEVICE USED TO COLLECT AND SUMMARIZE INFORMATION |
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Term
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Definition
| PROCESS OF RECORDING, MEASURING, SUMMARIZING, ANALYZING AND INTERPRETING FINANCIAL INFONRMAITON FOR DECISION-MAKING PURPOSES. |
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Term
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Definition
| ANY BUSINESS, INDIVIDUAL OR NOT-FOR-PROFIT ORGANIZATION WHOSE FINANCIAL AFFAIRS CAN BE VIEWED AS DISTINCT FROM ANY OTHER ENTITY. |
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Term
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Definition
| ASSETS = LIABILITIES + OWNERS EQUITY |
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Term
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Definition
| REVENUES SHOULD BE REPORTED WHEN EARNED RATHER THAN WHEN CASH IS RECEIVED; EXPENSES SHOULD BE REPORTED SHEN INCURRED RATHER THAN WHEN PAID. |
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Term
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Definition
| CPA REVIEWS COMPANY'S FINANCIAL STATEMENTS TO DETERMINE THEIR CONFORMITY WITH GENERALL ACCEPTED ACCOUONTING PRINCIPLES. |
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Term
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Definition
| WHEN DOUBT EXISTS AB OUT VALUATION OF AN ASSET, CHOOSE METHOD LEAST LIKELY TO OVERSTATE INCOME OR UNDERSTATE LIABILITY. |
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Term
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Definition
| ONCE CHOSEN, USE SAME ACCOUNTING METHOD FROM ONE PERIOD TO ANOTHER. |
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Term
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Definition
| SEPARATE LEGAL ENTITY CREATED BY STATE OR FEDERAL LAWS HAVING SAME LEGAL RIGHTS & O BLIGATIONS AS INDIVIDUALS. |
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Term
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Definition
| RECORDED ON RIGHT SIDE OF A T-ACCOUNT. |
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Term
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Definition
| ENTRY RECORDED ON LEFT SIDE OF A T-ACCOUNT. |
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Term
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Definition
| RECORDING OF AN EQUAL AMOUNT OF DEBITS AND CREDITS. |
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Term
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Definition
| DIVISION OF THE LIFE OF AN ENTITY INTO ARBITRARY PERIODIC TIME INTERVALS. |
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Term
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Definition
| COSTS OF GOODS AND SERVICES CONSOUMED BY THE ENTITYAS A RESULT OF EAARNING REVENUE. |
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Term
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Definition
| A NUMBER OF USERS OF ACCOUNTING DATA THAT ARE EXTERNAL TO THE COMPANY'S MANAGEMENT. |
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Term
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Definition
| STANDARD GEBERAL-PURPOSE REPORTS INCLUDING BALANCE SHEET, THE INCOME STATEMENT AND THE CASH FLOW STATEMENT. |
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Term
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Definition
| AN ACCOUNTING PERIOD CONSISTING OF 12 MONTHS. |
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Term
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Definition
| ALL RELEVANT INFORMATION TO DECISION MAKERS BE COMMUNITACED TO THEM THROUGH THE FINANCIAL STATEMENTS. |
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Term
| GENERALLT ACCEPTED ACCOUNTING PRINCIPLES (GAAP) |
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Definition
| RULES GOVERNING FORMAT OF FINANCIAL STATEMENTS AND METHODS OF RECORDING DATA SUMMARIZED WITHIN THEM. |
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Term
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Definition
| ACCOUNTANT ASSUMES THAT THE ENTITY IS GOING TO EXIST FOR AN INDEFINITE PERIOD OF TIME. |
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Term
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Definition
| ORIGINAL PURCHASE COST USED TO VALUE ASSETS FOR FINANCIAL STATEMENT PURPOSES. |
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Term
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Definition
| MANAGERS WHO USE FINANCIAL DATA WITHIN THE BUSINESS. |
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Term
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Definition
| BOOKS OF ORIGINAL ENTRY OF ACCOUNTING TRANSACTIONS. |
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Term
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Definition
| RECORD OF ALL ACCOUNTS MAINTAINED BY AN ENTITY. |
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Term
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Definition
| OBLIGATIONS OR DEBTS OF AN ENTITY OWED TO OTHER PARTIES. |
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Term
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Definition
| EXPENSES INCURRED IN EARNING REVENUES SHOULD BE MATCHED WITH THOSE REVENUES TO DETERMINE NET INCOME. |
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Term
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Definition
| RELATIVE IMPORTANCE OF AN ITEM OR EVENT TO THE DECISIONS THAT USEERS WILL BE MAKING. |
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Term
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Definition
| COMMON UNIT OF MEASURE USED FOR RECORDING ECONOMIC EVENTS. |
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Term
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Definition
| REPRESENTS RESOURCES INVESTED IN THE BUSINESS BY THE OWONERS (STOCKHOLDERS). |
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Term
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Definition
| BUSINES WITH 2 OR MORE OWNERS WHO AGREED TO OPERATE AS CO-OWNERS; WHO SHARE THE PROFITS AND LOSSES OF THE BUSINESS IN AN AGREED-ON PROPORTION. |
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Term
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Definition
| LIFE OF ENTITY DIVIDED INTO TIME INTERVALS FOR REPORTING PURPOSES. |
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Term
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Definition
| DEBITS AND CREDITS RECORDED IN THE JOURNAL ENTRIES ARE POSTED TO THE APPROPRIATE LEDGER ACCOUNTS. |
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Term
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Definition
| ACCOUNTING INFORMATION MUST MAKE A DIFFERENCE IN THE SPECIFIC DECISIONS THAT ARE TO BE MADE FROM THE INFORMATION. |
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Term
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Definition
| EARNINGS RESULTING FROM THE RECEIPT OF CASH OR OTHER ASSETS IN EXCHANGE FOR GOODS SP;D OR SERVICES PERFORMED BY AN ENTITY. |
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Term
| SHAREHOLDERS (STOCKHOLDERS) |
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Definition
| OWNERS OF THE CAPITAL STOCKOF THE COMPANY AND OWNERS OF THE CORPORATION. |
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Term
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Definition
| BUSINESS OWNED BY ONE INDIVIDUAL. |
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Term
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Definition
| CONCEPT THAT ASSUMES THAT A DOLLAR TODAY IW WORTH THE SAME AMOUNT AS A DOLLAR USED TO BY AN ASSET IN THE PAST. |
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Term
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Definition
| CONCEPT THAT ASSUMES THAT A DOLLAR TODAY IW WORTH THE SAME AMOUNT AS A DOLLAR USED TO BY AN ASSET IN THE PAST. |
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Term
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Definition
| REPRESENTS THE RESOURCES INVESTED IN THE BUSINESS BY THE OWNERS. |
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Term
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Definition
| LISTING OF ALL LEDGER ACCOUNT BALANCES; SUMMARIZING ALL LEDGER ACCOUNTS. |
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