Accounting 101- Basic Accounting
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Accounting 101 Vocabulary Terms 42 Basic Accounting Terms Basic Accounting
Teacher 23 terms 42 terms 154 terms
Kimberly_Stocking6 Preview Ashleyhope78 Preview Cap_Concept
Terms in this set (217)
Accountant A person who keeps the financial history of the transactions of
an economic unit in written form. (p. 4)
Accounting The process of analyzing, classifying, recording, summarizing,
and interpreting business transactions in financial or monetary
terms. (p. 3)
Economic unit Includes both business enterprises and not-for-profit entities.
(p. 3)
Ethics A philosophy or code or system of morality that is, how we
conduct ourselves from day to day in a variety of situations
requiring a decision, usually of a right or wrong nature. (p. 8)
(FASB) Financial Accounting Standards The organization, created in 1973 by the SEC, that created
Board SEC-FASB-GAAP GAAP. (p. 4)
,(GAAP) Generally Accepted Accounting The rules or guidelines used for carrying out the accounting
Principles process. (p. 4)
(IASB) International Accounting Standards The International organization that provides Standards or
Board rules for international financial reporting. (p. 4)
(IFRS) International Financial Reporting The rules or guidelines that guide International Financial
Standards Reporting. (p.g 4)
Paraprofessional accountants People who are qualified in accounting to assume the duties
of a general bookkeeper as well as some of the duties of a
professional accountant under that accountant's supervision.
(p. 7)
Sarbanes-Oxley Act A U.S. federal law enacted as a response to a number of major
corporate and accounting scandals that establishes a wide
range of rules related to the audit environment and internal
controls. (p. 9)
(SEC) Securities and Exchange Commission The agency responsible for regulating public companies
traded on a U.S. Stock Exchange. (p. 4)
Transaction An event directly affecting an economic entity that can be
expressed in terms of money and that must be recorded in the
accounting records. (p. 3)
Owner's Equity Owner's right to or investment in the business. (p. 13)
Assets Cash, properties or things of value owned by an economic
unit or business entity. (p. 13)
Business entity A business enterprise, separate and distinct from the persons
who supply the assets it uses. (p. 13)
Creditor One to whom money is owed. (p. 14)
Capital The owner's investment, or equity, in an enterprise.
(p. 13)
Chart of Accounts The official list of accounts tailor-made for the business. (p. 22)
Liabilities Debts or amounts owed to creditors. (p. 14)
Revenues Amounts earned by a business (fees for services, income from
sales, rent income, interest earned for lending money).
Expenses The costs that relate to earning revenue (the costs of doing
business); examples are wages, rent, interest, and advertising.
They may be paid in cash immediately or at a future time (AP)
(p.21)
, Account numbers The numbers assigned to accounts according to the chart of
accounts. (p. 22)
Accounts The categories under the Assets, Liabilities, and Owner's
Equity headings. (p.16)
Accounts Payable A liability account used for short-term obligations or charge
accounts, usually due within 30 days (p. 18)
Accounts Receivable An account used to record the amounts due from (legal
claims against) charge customers. (p.27)
Backups Procedures that store company data files in a a safe place,
such as online or on a flash drive. (p. 34)
Cloud computing Software that is used via the Internet instead of from a local
computer. Software and data can be accessed anywhere
there is an Internet connection. (p. 34)
Computerized accounting An accounting system that records transactions using a
computer and accounting software such as QuickBooks. (p.
33)
Double-entry accounting The system by which each business transaction is recorded in
at least two accounts and the accounting equation is kept in
balance. (p.17)
Equity The value of a right or claim to or financial interest in an asset
or group of assets. (p. 13)
Fair market value The present worth of an asset or the amount that would be
received if the asset were sold to an outsider on the open
market. (p. 19)
Fundamental accounting equation (Assets=Liabilities+Owner's Equity) An equation expressing the
relationship of assets, liabilities, and owner's equity. (p. 14)
Manual accounting system An accounting system in which transactions are recorded by
hand. (p. 33)
Separate entity concept The concept by which a business is treated as a separate
economic or accounting entity. The business stands by itself,
separate from its owners, creditors, and customers. (p. 16)
Sole proprietorship A one-owner business. (p. 16)
Withdrawal (This is also referred to as The taking of cash or other assets out of a business by the
drawing and is treated as a decrease in owner for his or her own use.
owner's equity). (p.30)
22 studiers in 3 days 5.0 (2 reviews)
Add to calendar
Play your way to mastery with fun games
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Students also studied
Flashcard sets Study guides
Accounting 101 Vocabulary Terms 42 Basic Accounting Terms Basic Accounting
Teacher 23 terms 42 terms 154 terms
Kimberly_Stocking6 Preview Ashleyhope78 Preview Cap_Concept
Terms in this set (217)
Accountant A person who keeps the financial history of the transactions of
an economic unit in written form. (p. 4)
Accounting The process of analyzing, classifying, recording, summarizing,
and interpreting business transactions in financial or monetary
terms. (p. 3)
Economic unit Includes both business enterprises and not-for-profit entities.
(p. 3)
Ethics A philosophy or code or system of morality that is, how we
conduct ourselves from day to day in a variety of situations
requiring a decision, usually of a right or wrong nature. (p. 8)
(FASB) Financial Accounting Standards The organization, created in 1973 by the SEC, that created
Board SEC-FASB-GAAP GAAP. (p. 4)
,(GAAP) Generally Accepted Accounting The rules or guidelines used for carrying out the accounting
Principles process. (p. 4)
(IASB) International Accounting Standards The International organization that provides Standards or
Board rules for international financial reporting. (p. 4)
(IFRS) International Financial Reporting The rules or guidelines that guide International Financial
Standards Reporting. (p.g 4)
Paraprofessional accountants People who are qualified in accounting to assume the duties
of a general bookkeeper as well as some of the duties of a
professional accountant under that accountant's supervision.
(p. 7)
Sarbanes-Oxley Act A U.S. federal law enacted as a response to a number of major
corporate and accounting scandals that establishes a wide
range of rules related to the audit environment and internal
controls. (p. 9)
(SEC) Securities and Exchange Commission The agency responsible for regulating public companies
traded on a U.S. Stock Exchange. (p. 4)
Transaction An event directly affecting an economic entity that can be
expressed in terms of money and that must be recorded in the
accounting records. (p. 3)
Owner's Equity Owner's right to or investment in the business. (p. 13)
Assets Cash, properties or things of value owned by an economic
unit or business entity. (p. 13)
Business entity A business enterprise, separate and distinct from the persons
who supply the assets it uses. (p. 13)
Creditor One to whom money is owed. (p. 14)
Capital The owner's investment, or equity, in an enterprise.
(p. 13)
Chart of Accounts The official list of accounts tailor-made for the business. (p. 22)
Liabilities Debts or amounts owed to creditors. (p. 14)
Revenues Amounts earned by a business (fees for services, income from
sales, rent income, interest earned for lending money).
Expenses The costs that relate to earning revenue (the costs of doing
business); examples are wages, rent, interest, and advertising.
They may be paid in cash immediately or at a future time (AP)
(p.21)
, Account numbers The numbers assigned to accounts according to the chart of
accounts. (p. 22)
Accounts The categories under the Assets, Liabilities, and Owner's
Equity headings. (p.16)
Accounts Payable A liability account used for short-term obligations or charge
accounts, usually due within 30 days (p. 18)
Accounts Receivable An account used to record the amounts due from (legal
claims against) charge customers. (p.27)
Backups Procedures that store company data files in a a safe place,
such as online or on a flash drive. (p. 34)
Cloud computing Software that is used via the Internet instead of from a local
computer. Software and data can be accessed anywhere
there is an Internet connection. (p. 34)
Computerized accounting An accounting system that records transactions using a
computer and accounting software such as QuickBooks. (p.
33)
Double-entry accounting The system by which each business transaction is recorded in
at least two accounts and the accounting equation is kept in
balance. (p.17)
Equity The value of a right or claim to or financial interest in an asset
or group of assets. (p. 13)
Fair market value The present worth of an asset or the amount that would be
received if the asset were sold to an outsider on the open
market. (p. 19)
Fundamental accounting equation (Assets=Liabilities+Owner's Equity) An equation expressing the
relationship of assets, liabilities, and owner's equity. (p. 14)
Manual accounting system An accounting system in which transactions are recorded by
hand. (p. 33)
Separate entity concept The concept by which a business is treated as a separate
economic or accounting entity. The business stands by itself,
separate from its owners, creditors, and customers. (p. 16)
Sole proprietorship A one-owner business. (p. 16)
Withdrawal (This is also referred to as The taking of cash or other assets out of a business by the
drawing and is treated as a decrease in owner for his or her own use.
owner's equity). (p.30)
