Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Nature of Accounting
Objective 4.01 Part 2
| Term | Definition |
|---|---|
| Accountant | An individual who ha had specialized training in accounting procedures |
| Accounting | The process of keeping financial records |
| Accounting cycle | A process or series of steps that businesses complete to maintain their financial records effectively |
| Accounting standards | Rules that accountants must follow when preparing financial statements |
| Accounting system | The methods and procedures used in constantly handling the business's financial information |
| Acquisition of funds | Finance activity involving making decisions about financing |
| Administration of assets | Finance activity involving making decisions about a firm's investments |
| Accrual accounting method | A method of accounting that records transaction at the they occur even if no money changes hands at the time |
| Assets | Anything of value that a business owns |
| Balance sheets | A financial statement that captures the financial condition of the business at that particular moment |
| Bookkeeping | The steps of the accounting cycle that involve recording each business transaction; the process of analyzing financial transactions, posting to ledgers, and balancing the books |
| Cash | Currency and coins |
| Cash accounting method | An accounting method in which income and expenditures are recorded at the time the money changes hands |
| Cash flow statement | A financial summary with estimates as to when, where, and how much money will flow into and out of a business |
| Capital investment decisions | Decisions that determine which projects a business will invest in, how the investment(s) will be financed, whether to pay dividends to shareholders |
| Credit | The arrangement by which businesses or individuals can purchase now and pay later |
| Expenditures | The monies that a business spends; also called expenses |
| Expenses | The monies that a business spends; also called expenditures |
| Finance | In the business, the function that involves all money and money management matters |
| Financial accounting | A type of accounting that involves preparing and reporting financial data to external users who are not directly involved in business operations |
| Financial statements | A summary of accounting information |
| Income | Money received by a business or an individual from outside sources |
| Income statement | A financial summary that shows how much money the business has made or has lost; also called the profit-and-loss statement |
| Investors | Those who invest their funds in a business; may be owners or stockholders |
| Journal | A special book or computer program in which a business's transaction are recorded in the order in which they occur |
| Ledger | The accounting record for a specific department or area of the business |
| Liabilities | Debts that the business owes |
| Managerial accounting | A type of accounting that involves preparing and reporting financial data to internal users; usually managers, who need financial information to control day-to-day operations and to make financial decisions and plans affecting the business |
| Net worth | The total value of the business |
| Owner's equity | The amount an owner has invested in the business plus or minus profits and losses |
| Transaction | A business activity such as a sale, a purchase, or return |
| Trail balance | The listing of a business's different accounts and their current balances; used to check the accuracy of journal and ledger entries |
Created by:
olyvama.v745
Popular Business sets