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Financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time.
What is the balance sheet?
A long-term resource owned by a business that is not expected to be turned into cash, sold, or consumed within 12 months
What is a non current asset?
The period between the acquisition of resources (assets) and their conversion (usually through their sale) into cash or cash equivalents
What is the operating cycle?
Is an economic resource controlled by the entity as a result of past events
What is an asset?
One is an entry on the left side of an account ledger, and a the other is an entry on the right side
What are debit and credit?
The process of quantification of the amount by which elements are expressed in the financial statements.
What is measurement within the accountin cycle?
An independent and objective examination of an organization's financial statements and records to verify that they are accurate and comply with standard accounting rules
What is a financial audit?
Is a present obligation of the entity to transfer economic resources to third parties as a result of past events
What is a liability?
Financial statement that summarizes a company's revenues, expenses, gains, and losses over a specific accounting period to show its overall profit or loss
What is the income statement?
The standard method of recording every business transaction in two different places to reflect a debit and a credit.
What is the double entry principle?
The process that includes the identification, recognition, measurement, presentation and disclosure of economic events to enable users of information to make timely and appropriate decisions.
What is the accounting cycle or process?
Is a present obligation of the entity to transfer economic resources to third parties as a result of past events
What is equity?
Increases in assets or reductions in liabilities, which therefore give rise to increases in equity other than contributions from shareholders
What is income?
Decreases in assets or increases in liabilities during the period that result in decreases in equity other than those relating to distributions to holders of equity claims.
What are expenses?
Set of global accounting rules and guidelines that tell companies how to prepare and present their financial statements
What is IFRS (International Financial Reporting Standards)?