Basic Accounting Principles
Basic Accounting Principles
Accounting - ANS-The systematic recording, reporting, and analysis of financial
transactions according to accepted principles in order to provide meaningful financial
information
Generally Accepted Accounting Principles - ANS-(GAAP) Accounting rules used to
prepare, present, and report financial statements
Financial Accounting Standards Board - ANS-(FASB)Set accounting principles
Assets - ANS-Items of value owned by the company
Current Assets - ANS-Any assets easily converted into cash within one calendar year
Cash - ANS-Money available immediately
Accounts Receivable - ANS-Money owed to the business for purchases made by
customers, suppliers, and other vendors
Notes Receivable - ANS-Notes due within the year
Total Fixed Assets - ANS-Total dollar value of all fixed assets in your business, less any
accumulated depreciation
Liabilities - ANS-Debts the company owes or obligations the company has
Accounts Payable - ANS-Comprised of all short - term obligations owed by your
business to creditors, suppliers, and other vendors
Notes Payable - ANS-Represents money owed on a short term collection cycle
Total Current Liabilities - ANS-Sum if all current liabilities owed to creditors that must be
paid within a one year time frame
Owners Equity - ANS-Made up of the initial investment in the business as well as any
retained earnings reinvested in the business
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Basic Accounting Principles
Accounting - ANS-The systematic recording, reporting, and analysis of financial
transactions according to accepted principles in order to provide meaningful financial
information
Generally Accepted Accounting Principles - ANS-(GAAP) Accounting rules used to
prepare, present, and report financial statements
Financial Accounting Standards Board - ANS-(FASB)Set accounting principles
Assets - ANS-Items of value owned by the company
Current Assets - ANS-Any assets easily converted into cash within one calendar year
Cash - ANS-Money available immediately
Accounts Receivable - ANS-Money owed to the business for purchases made by
customers, suppliers, and other vendors
Notes Receivable - ANS-Notes due within the year
Total Fixed Assets - ANS-Total dollar value of all fixed assets in your business, less any
accumulated depreciation
Liabilities - ANS-Debts the company owes or obligations the company has
Accounts Payable - ANS-Comprised of all short - term obligations owed by your
business to creditors, suppliers, and other vendors
Notes Payable - ANS-Represents money owed on a short term collection cycle
Total Current Liabilities - ANS-Sum if all current liabilities owed to creditors that must be
paid within a one year time frame
Owners Equity - ANS-Made up of the initial investment in the business as well as any
retained earnings reinvested in the business
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