Accounts Payable - Amounts a business must pay in the future.
Accounts Receivable - Claims for future collection from customers.
Assets - Property owned
... [Show More] by a business.
Balance Sheet - A formal report of a business' financial condition on a certain date;
reports the assets, liabilities, and owner's equity of the business.
Break Even - A point at which revenue equals expenses.
Business Transactions - A financial event that changes the resources of a firm.
Capital - Financial investment in a business; equity.
Equity - An owner's financial interest in a business.
Expense - An outflow of cash, use of other assets, or incurring of a liability.
Fair Market Value - The current worth of an asset or the price the asset would bring if
sold on the open market.
Fundamental Accounting Equation - The relationship between assets and liabilities
plus the owner's equity.
Income Statement - A formal report of business operations covering a specific period
of time; also called a profit and loss statement or a statement of income and
expenses.
Liabilities - Debts or obligations of a business.
Net Income - The result of an excess of revenue over expenses.
Net Loss - The result of an excess of expenses over revenue.
On Account - An arrangement to allow payment at a later date; also called a charge
account or open-account credit.
Owner's Equity - The financial interest of the owner of a business; also called
proprietorship or net worth.
Revenue - An inflow of money or other assets that results from the sales of goods or
services or from the use of money or property; also called income.
Statement of Owner's Equity - A formal report of changes that occurred in the
owner's financial interest during a reporting period.
Withdrawals - Funds taken from the business by the owner for personal use.
Accounting - The process by which financial information about a business is
recorded, classified, summarized, interpreted, and communicated to owners,
managers, and other interested parties.
Accounting System - A process designed to accumulate, classify, and summarize
financial data.
Auditing - The review of financial statements to assess their fairness and adherence
to generally accepted accounting principles.
Auditor's Report - An independent accountant's review of a firm's financial
statements.
Certified Public Accountant (CPA) - An independent accountant who provides
accounting services to the public for a fee.
Corporation - A publicly or privately owned business entity that is separate from its
owners and has a legal right to own property and do business in its own name;
stockholders are not responsible for the debts or taxes of the business.
Creditor - One to whom money is owned.
Discussion Memorandum - An explanation of a topic under consideration by the
Financial Accounting Standards Board.
Economic Entity - A business or organization whose major purpose is to produce a
profit for its owners.
Entity - Anything having its own separate identity, such as an individual, a town, a
university, or a business.
Exposure Draft - A proposed solution to a problem being considered by the Financial
Accounting Standards Board.
Financial Statements - Periodic Reports of a firm's financial position or operating
results.
Generally Accepted Accounting Principles (GAAP) - Accounting standards
developed and applied by professional accountants.
Governmental Accounting - Accounting work performed for a federal, state, or local
governmental unit.
International Accounting - The study of accounting principles used by different
countries.
Management Advisory Services - Services designed to help clients improve their
information systems or their business performance. [Show Less]