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Accounting
Accounting is the information system that measures business activity, processes the data and reports and communicates the results to decision makers.Accounting is "The Language of Business." TERM 2
Managerial Accounting
DEFINITION 2 Managerial Accounting is the branch of accounting that focuses on information for internal decision makers of a business. TERM 3
Creditors
DEFINITION 3 Creditors are those whom a business owes money. TERM 4
(IFRS) International Financial Reporting
Standards
DEFINITION 4 IFRS is not applied to all companies; few and certain companiesThe IFRS is less specific that GAAP (Generally Accepted Accounting Principles) TERM 5
Liabilities
DEFINITION 5 Liabilities tend to have the word "Payable"in their titles
Balance Sheet
An entity's assets, liabilities, and stockholder's equity as of a specific date. Also called the "statement of financial position." TERM 7
Account
DEFINITION 7 An account is the detailed record of all the changes that have occurred in a particular asset, liability, or owners' equity. (stockholder's equity) during a period. The basic summary device of accounting. TERM 8
Trial Balance
DEFINITION 8 A trial balance is a list of all the ledger account with their balances at a point in time. TERM 9
Journal
DEFINITION 9 A journal is the chronological accounting record of an entity's transactions. TERM 10
Debit/
Credit
DEFINITION 10 The left side of a T- account is called the debit side, and the right side is called the credit side.
When transactions are recorded in the accrual
way of doing accounting
When transactions are recorded in the accrual way of doing accounting they are recorded as they occur. TERM 17
Revenue is recognized in the cash basis way
of doing accounting when..
DEFINITION 17 When cash is received, revenue is recognized in the cash basis way of accounting. TERM 18
Expenses are recognized in the cash basis
way of doing accounting when...
DEFINITION 18 When cash is paid out, expenses are recognized in the cash basis way of doing accounting. TERM 19
What type of accounting does GAAP
require?
DEFINITION 19 GAAP requires accrual accounting
