ACCOUNTING
language of business
ACCOUNTING
The accounting principle that revenue should be recognized when earned, regardless of when received.
REVENUE RECOGNITION PRINCIPLE
recording of transactions using journal entries
RECORDING/RECORD
Represents Assets of firm.
PERMANENT/REAL ACCOUNT
the systematic process of recording, measuring, and communicating financial information to external stakeholders, including investors, creditors, regulators, and other decision-makers
FINANCIAL ACCOUNTING
Its function is to provide quantitative information, primarily financial in nature, about economic entities, that is intended to be useful in making economic decisions
ACCOUNTING
assumes that any organization will continue to operate its business for the foreseeable future.
GOING CONCERN ASSUMPTION
a company prepares an adjusted trial balance followed by the actual.
FINANCIAL STATEMENTS
An account that records income and expenses.
The branch of accounting concerned with providing information for internal users.
MANAGEMENT ACCOUNTING
ACCOUNTING EQUATION
ASSETS=LIABILITIES + OWNERS' EQUITY
Record expenses in the same period as related revenues.
MATCHING PRINCIPLE
Transfer information from the journal to the ledger accounts (like Cash, Accounts Receivable, Sales).
POSTING
An account that records company assets like buildings and equipment.
PERMANENT/REAL ACCOUNT
The branch of accounting that focuses on cost control and decision-making.
COST ACCOUNTING
debts or obligations expected to be settled within a year
CURRENT LIABILITIES
an accounting principle that allows a company's indefinite life to be divided into artificial time periods, typically months, quarters, or years, for the purpose of preparing financial statements.
TIME PERIOD ASSUMPTION
The trial balance ensures that total debits equal total credits in the financial records.
UNADJUSTED TRIAL BALANCE
These accounts are related to individuals, firms, companies, etc.
PERSONAL ACCOUNT
the process of recording and the management of all financial transactions incurred by the government which includes its income and expenditures.
GOVERNMENT ACCOUNTING
The document used to verify and support a transaction before journalizing.
SOURCE DOCUMENT
business transactions should only be recorded if they can be expressed in terms of a currency.
MONETARY UNIT ASSUMPTION
transferring net income to retained earnings
CLOSING THE BOOKS
The type of account that is closed at the end of the accounting period.
TEMPORARY/NOMINAL ACCOUNT
GIVE AT LEAST 3 BRANCHES OF ACCOUNTING
GOVERNMENT ACCOUNTING
FINANCIAL ACCOUNTING
COST ACCOUNTING
MANAGEMENT ACCOUNTING