Accounting procedures whereby sales revenue is recorded when earned and realized and expenses are recorded in the period in which they help to generate the sales revenue.
Made at the end of an accounting period under accrual accounting to ensure the proper matching of expenses incurred with revenues earned for the period.
Economic resources of a business that can be expressed in money terms.
Distributions of assets (usually cash) or stock from a corporation to its stockholders
Obligations/debts that a business must pay in money or services at some time in the future as a consequence of past transactions or events.
Excess of business’s sales revenues over expenses
Difference between a business’s assets & liabilities
Earnings of a corporation that have been retained in the corporation (have not been paid out as a dividend) for future corporate use.
Residual interest in the assets of a business after all liabilities have been paid off
Decreases in stockholders’ equity incurred by a firm during the process of generating its sales revenues .
Basic ownership class of capital stock, carrying the right to vote, share in earnings, participate in future share issues, and share in any liquidation proceeds after all more senior claims have been settled.
Increases in stockholders’ equity that result when a firm provides goods or services to its customers
Financial statement showing a business’s A’s, L’s,& S.E as of a specific date
Grouping of all of a business’s accounts used to prepare basic financial statements
Diary of a business’s accounting transactions
Financial statement reporting a business’s sales revenue & expenses for given period of time.
Expense paid in advance but which has not yet been incurred.
Payment received before good is sold or service is provided
Expense incurred but not yet paid.
Revenue earned but not yet billed or received.
goods that are considered to be the portion of a business’s assets that are ready or will be ready for sale.
Accounting process of identifying, measuring, and communicating financial information to help people make economic decisions Accounting Equation Assets = Liabilities + Equity American Institute of Certified Public Accountaints (AICPA) professional organization of CPAs in the Read more…
Managers Responsibilities Planning, Directing, Controlling Planning sets goals and objectives ex. generate more sales>open a new store Directing overseeing day-to-day operations ex. use cost report to adjust material usage Controlling evaluate results and make adjustments Read more…
accounting information system that identifies, records, and communicates the economic events of an organization annual report report prepared by corporate management that presents financial information and an independent auditor’s report Assets Resources owned by a Read more…