Basics of Accounting
This is the primary reason people start a business.
Profit
This type of accounting helps external stakeholders understand business performance
Financial Accounting
This term describes any event that has a financial impact on a business
Transaction
This concept treats the business and owner as two separate entities
Business Entity Concept
This statement shows income and expenses
Income Statement
The process of recording, classifying, summarizing, analyzing and reporting is known as?
Accounting
This accounting type helps calculate product or service costs
Cost Accounting
These are the things a business owns
Assets
Only transactions that can be measured in money are recorded under this concept
Money Measurement Concept
This statement shows what the company owns and owes
Balance Sheet
The first step in the accounting process is?
Recording transactions
This accounting type helps managers make internal decisions
Management Accounting
Money earned from sales
Revenue
This concept assumes the business will continue to operate even if anything happens to the owners
This statement tracks cash coming in and going out
Cash Flow Statement
This part of the accounting process describes organizing transactions into groups like sales, expenses, or purchases.
Classifying
A bakery uses this accounting type to determine how much it costs to make a cake
Cost Accounting
The two sides of every transaction in accounting
Debit and Credit
This concept ensures revenue and expenses of the same period are matched
Matching Concept
This statement tells you whether you made a profit or a loss
Income Statement
This part of the accounting process involves understanding patterns and drawing conclusions from financial data.
Analyzing
This type of accounting includes both financial and non-financial information.
Management Accounting
The step-by-step process of recording and reporting financial data.
Accounting Cycle
This concept states that the business should anticipate no profits and provide for all losses
Prudence Concept
This statement shows the company's liquidity
Cash Flow Statement