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4.01 natureof acc
Objective 4.01 part 2
Question | Answer |
---|---|
Accountant | an induvial who has had specialized training in accounting procedures |
Accounting | the process of keeping financial records |
Accounting cycle | a process or series of steps that business 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 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 transactions at the time they occur even if no money changes hands at the time. |
assets | anything of value that a business owns |
balance sheet | a financial statement that captures the financial condition of the business at that particular moment |
bookkeeping | the steps of the accounting method cycle that involve recording each business transaction, the process of analyzing financial transactions, journalizing 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 will be financed, and 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 business the function that involves all money and money management matters |
financial accounting | a summary of accounting that involves preparing and reporting financial data to external users who are not 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 statement | a financial summary that shows how much money the business has made or has lost also called a profit and loss statement |
investors | thosse who are |
journal | a special book or computer program in which a business transactions are recorded in the order in which they occur |
ledger | the accounting record for a specific department or area of the business |
liabilities | debs that the business owes |