Accounting 200 Exam 1
1) account payable: a liability backed by the general reputation and credit
standing at the debtor.
2) accounting: the information system that measures business activities,
processes that information into reports and financial statements, and
communicates the results to decision makers.
3) accounting equation: assets=liabilities+owners equity
4) asset: an economic resource that is expected to be of benefit in the future.
5) balance sheet: list of an entity's assets, liabilities, and owner's equity as of a
specific date. also called the statement of financial position.
6) board of directors: group elected by the stockholders to set policy for a
corporation and to appoint its officers.
7) capital: another name for the owner's equity of a business
8) cash: money and any medium of exchange that a bank accepts at face
value.
9) common stock: the most basic form of capital stock.
10) continuity (going concern) assumption: holds that the entity will
remain in operation for the foreseeable future.
11) corporation: a business owned by stockholders. It is a legal entity, an
"artificial person" in the eyes of the law.
, . Accounting 200 Exam 1
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12) current asset: an asset that is expected to be converted to cash, sold,
or consumed during the next 12 months or within the business's normal
operating cycle if longer than a year.
13) current liability: a debt due to be paid within one year or within the
entity's operating cycle if the cycle is longer than a year.
14) deficit: negative balance in retained earnings caused by net losses
over a period of years.
15) dividends: distributions (usually cash) by a corporation to its
stockholders. 16. entity: an organization or a section of an organization that,
for accounting purposes, stands apart from other organizations and
individuals as a separate economic unit.
16) expenses: decrease in retained earnings that results from operations;
the cost of doing business;opposite of revenues.
17) fair value: the amount that a business could sell an asses for, or the
amount that a business could pay to settle a liability.
18) financial accounting: the branch of accounting that provides
information to people outside the firm.
19) financial statements: business documents that report financial
information about a business entity to decision makers.
20) financial activities: activities that obtain from investors and creditors
the cash needed to launch and sustain the business; a section of the
statement of cash flows. 22 fixed assets and plant assets: other names for
property, plant, and equipment. 23. GAAP: accounting guidelines, formulated
by the Financial Standards Board, that govern how accounting is practiced.
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1) account payable: a liability backed by the general reputation and credit
standing at the debtor.
2) accounting: the information system that measures business activities,
processes that information into reports and financial statements, and
communicates the results to decision makers.
3) accounting equation: assets=liabilities+owners equity
4) asset: an economic resource that is expected to be of benefit in the future.
5) balance sheet: list of an entity's assets, liabilities, and owner's equity as of a
specific date. also called the statement of financial position.
6) board of directors: group elected by the stockholders to set policy for a
corporation and to appoint its officers.
7) capital: another name for the owner's equity of a business
8) cash: money and any medium of exchange that a bank accepts at face
value.
9) common stock: the most basic form of capital stock.
10) continuity (going concern) assumption: holds that the entity will
remain in operation for the foreseeable future.
11) corporation: a business owned by stockholders. It is a legal entity, an
"artificial person" in the eyes of the law.
, . Accounting 200 Exam 1
Study online at https://quizlet.com/_5sgge
12) current asset: an asset that is expected to be converted to cash, sold,
or consumed during the next 12 months or within the business's normal
operating cycle if longer than a year.
13) current liability: a debt due to be paid within one year or within the
entity's operating cycle if the cycle is longer than a year.
14) deficit: negative balance in retained earnings caused by net losses
over a period of years.
15) dividends: distributions (usually cash) by a corporation to its
stockholders. 16. entity: an organization or a section of an organization that,
for accounting purposes, stands apart from other organizations and
individuals as a separate economic unit.
16) expenses: decrease in retained earnings that results from operations;
the cost of doing business;opposite of revenues.
17) fair value: the amount that a business could sell an asses for, or the
amount that a business could pay to settle a liability.
18) financial accounting: the branch of accounting that provides
information to people outside the firm.
19) financial statements: business documents that report financial
information about a business entity to decision makers.
20) financial activities: activities that obtain from investors and creditors
the cash needed to launch and sustain the business; a section of the
statement of cash flows. 22 fixed assets and plant assets: other names for
property, plant, and equipment. 23. GAAP: accounting guidelines, formulated
by the Financial Standards Board, that govern how accounting is practiced.
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