Definitions
The art of identifying, recording and communicating
financial results in a time fashion
What is Accounting
The most liquid asset
what is cash
Buying of material for resale on credit
what is accounts payable
Three things must exist in order for fraud to occur
What is opportunity, rationalization, and need
Monies owed to a business from sales or services
what is accounts receivable
Wages and or salary owed to employess
What is wages payable
Something owned and has future value
what is an asset
Assets held for sale
what is inventory
Monies owed to a landlord
what is rent payable
Something you owe and you will use assets to settle
what are liabilities
Investments in assets that will produce long term results
what is property, plant and equipment
Revenue, expenses and dividends
what are the components of retained earnings
Assets = Liabilities plus owners equity
what is the accounting equation
the one asset a business cannot survive without
what is cash
Monies paid into a corporation in exchange for common stock
what is contributed capital