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Related Flashcards
Related Topics
Cards In This Set
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Accounting
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The information system that identifies, records, and communicates the economic events of an organization to interested users.
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Assets
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Resources a business owns.
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Balance Sheet
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Financial statement that reports the assets, liabilities, and owner's equity at a specific date.
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Accounting Equation
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Assets = Liabilities + Stockholder's Equity
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Bookkeeping
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A part of accounting that involves only the recording of economic events
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Common Stock
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The total amount paid in by stockholders for the shares they purchase.
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Corporation
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A separate legal entity, organized under corporate law, having ownership divided into transferable shares of stock.
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Cost Principle
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An accounting principle that states that companies should record assets at their cost.
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Dividend
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A distribution by a corporation to its stockholders on a pro rata or equal basis.
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Economic Entity Assumption
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Requires that the activities of an entity be kept separate and distinct from the activities of its owners and all other entities.
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Ethics
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The standards of conduct by which one's actions are judged right or wrong, honest or dishonest, fair or not fair.
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Exenses
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The cost of assets consumed or services used in the process of earning revenue.
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Fair Value Principle
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An accounting principle that states that companies should record their assets at fair value.
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Faithful representation
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Numbers and descriptions of financial information match what really existed or happened.
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Financial Accounting
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The field of accounting that provides economic and financial information for investors, creditors, and other external users.
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