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
FI-085
| Question | Answer |
|---|---|
| Accountant | An individual who has 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 consistently handling the business's financial information |
| Acquisition of funds | Finance activity involving making decisions about a firm's investment |
| Accrual accounting method | A method of accounting that records transactions at the same time they occur even if no money changes hands at the time |
| Assets | Anything of value that a business owns |
| Balance sheets | A financial summary with estimates as to when, where, and how much money will flow into and out of a business |
| Capital investments decisions | Decisions that determine which projects a business will invest in, how the investment will be financed and whether to pay dividends to shareholders |
| Credit | The arrangement by which businesses or individual 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 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 no directly involved in business operations |
| Financial statement | A summary of accounting information |
| Income | Money received by a business or an individual from outside sources |
| Income statements | 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 transactions 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 plan 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 |
| Transactions | A business activity such as a sale a purchase or a return |
| Trial balance | The listing of a business different accounts and their current balances; used to check the accuracy of journal and ledger entries |
Created by:
Anthony.d222
Popular Business sets