Accounting Terms
Statements and Reports
Chapter 2
Chapter 3
Chapter 4
100
Assets = Liabilities + Stockholders Equity
What is the Basic Accounting Equation?
100
A financial statement that reports the assets and claims to those assets at a specific point in time.
What is a Balance Sheet?
100
Cash and other resources that companies reasonably expect to convert to cash or use up within one year or the operating cycle, whichever is longer.
What is a Current Asset?
100
A list of a company's accounts
What is the Chart of Accounts?
100
The principle that companies recognize revenue in the accounting period in which it is earned.
What is the Revenue Recognition Principle?
200
Resources owned by a business
What is an Asset?
200
A financial statement that presents the revenues and expenses and resulting net income or net loss of a company for a specific period of time.
What is an Income Statement?
200
Obligations that a company expects to pay after one year
What is a Long Term Liability?
200
A ledger that contains all asset, liability, stockholders equity, revenue and expense accounts
What is the General Ledger
200
The principle that dictates that companies match expenses with revenues.
What is the Matching Principle?
300
The amount by which revenues exceed expenses
What is Net Income?
300
A Balance Sheet that contains a number of standard classifications and sections.
What is a Classified Balance Sheet?
300
An accounting principle that states that companies should record assets at their cost.
What is the Cost Principle?
300
The procedure of entering transaction data in the journal.
What is Journalizing?
300
Cash received before a company earns revenues and recorded as a liability until earned is called.
What is Unearned Revenue?
400

The owners' claim on total assets.

What is Owners Equity?

400
A financial statement that provides financial information about cash receipts and cash payments of a business for a specific period of time.
What is a Statement of Cash Flows?
400
A set of rules and practices, having substantial authoritative support that the accounting profession recognizes as a general guide for financial reporting purposes
What is GAAP (Generally Accepted Accounting Principles)?
400
The left side of a T account.
What is a Debit?
400
Entries made at the end of an accounting period to ensure that the revenue recognition and matching principles are followed.
What are Adjusting Entries?
500
The amount of net income retained in the corporation.
What is Retained Earnings?
500
A financial statement that summarizes the amounts and causes of changes in retained earnings for a specific period of time,
What is a Retained Earnings Statement?
500
Payments of cash from a corporation to its stockholders
What is a Dividend?
500
A list of all accounts and their balances at a given time.
What is a Trial Balance?
500
Entries at the end of an accounting period to transfer the balances of temporary accounts to a permanent stockholders' equity account, Retained Earnings.
What are Closing Entries?
M
e
n
u