Summary WGU C213 Accounting study guide latest updates

Accounting - A system of providing "quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions." Accounting Equation - Assets = Liabilities + Owners' Equity Accounts Payable - The flip side of accounts receivable—when one company sells on credit, creating for itself an account receivable, the company on the other side of the transaction is buying on credit, creating an account payable. Accounts Receivable - Amounts owed to a business by its credit customers and are usually collected in cash within 10 to 60 days. Accrual Accounting - The process that accountants use in adjusting raw transaction data into refined measures of a firm's economic performance. Accumulated Depreciation - Reflects the wear and tear, or depreciation, of these items since they were originally purchased.