Accounting 101: A Beginner’s Guide to Basic Accounting Principles
1.
2. Accountant A person who keeps the financial history of the transactions of an
economic unit in written form. (p. 4)
3. Accounting The process of analyzing, classifying, recording, summarizing,
, Accounting 101: A Beginner’s Guide to Basic Accounting Principles
and interpreting business transactions in financial or monetary
terms. (p. 3)
4. Economic unit Includes both business enterprises and not-for-profit entities. (p.
3)
5. Ethics A philosophy or code or system of morality that is, how we con-
duct ourselves from day to day in a variety of situations requiring
a decision, usually of a right or wrong nature. (p. 8)
6. (FASB) Financial Account- The organization, created in 1973 by the SEC, that created GAAP.
ing Standards Board (p. 4)
SEC-FASB-GAAP
7. (GAAP) Generally Accepted The rules or guidelines used for carrying out the accounting
Accounting Principles process. (p. 4)
8. (IASB) International Ac- The International organization that provides Standards or rules
counting Standards Board for international financial reporting. (p. 4)
9. (IFRS) International Finan- The rules or guidelines that guide International Financial Report-
cial Reporting Standards ing. (p.g 4)
10. Paraprofessional accoun- People who are qualified in accounting to assume the duties
tants of a general bookkeeper as well as some of the duties of a
professional accountant under that accountant's supervision. (p.
7)
11. 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
, Accounting 101: A Beginner’s Guide to Basic Accounting Principles
of rules related to the audit environment and internal controls.
(p. 9)
12. (SEC) Securities and Ex- The agency responsible for regulating public companies traded
change Commission on a U.S. Stock Exchange. (p. 4)
13. Transaction An event directly attecting an economic entity that can be ex-
pressed in terms of money and that must be recorded in the
accounting records. (p. 3)
14. Owner's Equity Owner's right to or investment in the business. (p. 13)
15. Assets Cash, properties or things of value owned by an economic unit
or business entity. (p. 13)
16. Business entity A business enterprise, separate and distinct from the persons
who supply the assets it uses. (p. 13)
17. Creditor One to whom money is owed. (p. 14)
18. Capital The owner's investment, or equity, in an enterprise.
(p. 13)
19. Chart of Accounts The oflcial list of accounts tailor-made for the business. (p. 22)
20. Liabilities Debts or amounts owed to creditors. (p. 14)
21. Revenues Amounts earned by a business (fees for services, income from
sales, rent income, interest earned for lending money).
22. 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)
1.
2. Accountant A person who keeps the financial history of the transactions of an
economic unit in written form. (p. 4)
3. Accounting The process of analyzing, classifying, recording, summarizing,
, Accounting 101: A Beginner’s Guide to Basic Accounting Principles
and interpreting business transactions in financial or monetary
terms. (p. 3)
4. Economic unit Includes both business enterprises and not-for-profit entities. (p.
3)
5. Ethics A philosophy or code or system of morality that is, how we con-
duct ourselves from day to day in a variety of situations requiring
a decision, usually of a right or wrong nature. (p. 8)
6. (FASB) Financial Account- The organization, created in 1973 by the SEC, that created GAAP.
ing Standards Board (p. 4)
SEC-FASB-GAAP
7. (GAAP) Generally Accepted The rules or guidelines used for carrying out the accounting
Accounting Principles process. (p. 4)
8. (IASB) International Ac- The International organization that provides Standards or rules
counting Standards Board for international financial reporting. (p. 4)
9. (IFRS) International Finan- The rules or guidelines that guide International Financial Report-
cial Reporting Standards ing. (p.g 4)
10. Paraprofessional accoun- People who are qualified in accounting to assume the duties
tants of a general bookkeeper as well as some of the duties of a
professional accountant under that accountant's supervision. (p.
7)
11. 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
, Accounting 101: A Beginner’s Guide to Basic Accounting Principles
of rules related to the audit environment and internal controls.
(p. 9)
12. (SEC) Securities and Ex- The agency responsible for regulating public companies traded
change Commission on a U.S. Stock Exchange. (p. 4)
13. Transaction An event directly attecting an economic entity that can be ex-
pressed in terms of money and that must be recorded in the
accounting records. (p. 3)
14. Owner's Equity Owner's right to or investment in the business. (p. 13)
15. Assets Cash, properties or things of value owned by an economic unit
or business entity. (p. 13)
16. Business entity A business enterprise, separate and distinct from the persons
who supply the assets it uses. (p. 13)
17. Creditor One to whom money is owed. (p. 14)
18. Capital The owner's investment, or equity, in an enterprise.
(p. 13)
19. Chart of Accounts The oflcial list of accounts tailor-made for the business. (p. 22)
20. Liabilities Debts or amounts owed to creditors. (p. 14)
21. Revenues Amounts earned by a business (fees for services, income from
sales, rent income, interest earned for lending money).
22. 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)
