Key terms from thing 1: Introducing accounting in company from gaue won Accounting, details for decisions by man J. Wild. McGraw-Hill, 2005.

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Accounting
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Information and also measurement device that identifies, records, and communicates relevant information around a company\"s business activities.
Accounting EquationEquality including a company\"s assets, liabilities, and also equity: legacy = liabilities + Equity; also called balance sheet equation.
AssetsResources a business owns or controls that space expected to carry out current and also future benefits to the business.
AuditAnalysis and report of an organization\"s audit system, the records, and also its reports using miscellaneous tests.
Balance SheetFinancial statement the lists types and dollar quantities of assets, liabilities, and equity at a specific date.
BookkeepingPart of accounting that requires recording transactions and events, one of two people manually or electronically; also called bookkeeping.
Business reality PrinciplePrinciple that calls for a business to be accounting for independently from its owner(s) and also from any other entity
Common StockCorporation\"s simple ownership share; likewise called capital stock.
Contributed CapitalTotal quantity of cash and also other assets received from stockholders in exchange for stock; likewise called paid-in capital.
CorporationBusiness that is a different legal entity under state or federal laws with owners referred to as shareholders or stockholders.
Cost PrincipleAccounting principle that requires financial statement details to be based on actual expenses incurred in service transactions.
DividendsCorporation\"s distributions of assets come its owners.
EquityOwner\"s claim on the heritage of a business; equals the residual attention in an entity\"s assets after ~ deducting liabilities; likewise called net assets.
EthicsCodes of conduct whereby actions room judged as right or wrong, fair or unfair, ethical or dishonest.
EventsHappenings that both impact an organization\"s gaue won position and also can be reliably measured.
Expanded accountancy EquationAssets = liabilities + Equity where Equity equals .
ExpensesOutflows or utilizing up of assets as part of to work of a service to generate sales.
External TransactionsExchanges of financial value between one entity and also another entity.
External UsersPersons using accounting information who room not directly involved in running the organization.
Financial AccountingArea of accountancy mainly aimed in ~ serving exterior users.
Financial accounting Standards plank (FASB)Independent group of full-time members responsible for setup accounting rules.
Generally Accepted accountancy Principles (GAAP)Rules that specify acceptable accounting practices.
Going-Concern PrinciplePrinciple that needs financial statements to reflect the presumption that the organization will continue operating.
IncomeAmount earned after subtracting all prices necessary for and also matched with sales for a period; additionally called income, profit, or earnings.
Income StatementFinancial statement the subtracts costs from profits to productivity a net revenue or loss over a specified period of time; also includes any kind of gains or losses.
Internal TransactionsActivities within an organization that can impact the bookkeeping equation.
Internal UsersPersons using accounting information who room directly associated in regulating the organization.
International accountancy Standards board (IASB)Group the identifies preferred accountancy practices and also encourages worldwide acceptance; issues International financial Reporting standards (IFRS).
LiabilitiesCreditors\" cases on an organization\"s assets; requires a probable future payment of assets or services that a firm is obligated to make as result of past transactions or events.
Managerial AccountingArea of accountancy mainly aimed at offer the decision-making requirements of interior users; also called management accounting.
Monetary Unit PrinciplePrinciple that assumes transactions and events have the right to be expressed in money units.
Net AssetsOwner\"s claim on the assets of a business; amounts to the residual interest in an entity\"s assets after ~ deducting liabilities; additionally called network assets.
Net IncomeAmount earned after subtracting all expenses necessary for and also matched with sales because that a period; likewise called income, profit, or earnings.
Net LossExcess of expenses over profits for a period.
Objectivity PrinciplePrinciple the prescribes independent, unbiased proof to assistance financial explain information.
PartnershipUnincorporated combination of 2 or an ext persons to go after a business for profit as co-owners.
ProprietorshipBusiness owned by one person that is not organized as a corporation; likewise called proprietorship.
RecordkeepingPart of accountancy that entails recording transactions and also events, one of two people manually or electronically; additionally called bookkeeping.
Retained EarningsCumulative revenue less accumulation losses and dividends.
ReturnMonies got from one investment; frequently in percent form.
Return top top AssetsRatio mirroring operating efficiency; characterized as network income divided by average complete assets; likewise called return on heritage or return on investment.
RevenuesGross boost in same from a company\"s business activities that earn income; also called sales.
Revenue recognition PrincipleThe rule prescribing that revenue is known when earned.
RiskUncertainty about an supposed return.
Securities and Exchange board of directors (SEC)Federal agency Congress has charged to collection reporting rules for institutions that offer ownership shares to the public.
ShareholdersOwners of a corporation; also called stockholders.
SharesEquity of a corporation separated into units; additionally called stock.
Sole ProprietorshipBusiness owned by one human being that is not arranged as a corporation; also called proprietorship.
Statement that Cash FlowsA financial statement the lists cash inflows (receipts) and cash outflows (payments) during a period; arranged by operating, investing, and also financing.
Statement of retained EarningsReport of alters in retained revenue over a period; adjusted for increases (net income), because that decreases (dividends and also net loss), and for any type of prior duration adjustments.
StockEquity that a corporation separated into units; additionally called stock.

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StockholdersOwners of a corporation; also called stockholders.
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