Terminology 1
The ________ _______ consists of the three basic accounting elements: Assets = Liabilities + Owner’s Equity
Accounting Equation
Determining the cost of producing specific products or providing services and analyzing for cost effectiveness is called ______ ________
Cost Accounting
The decrease in assets (or increase in liabilities) as a result of efforts to produce revenues is called ____
Expenses
An amount owed to a business by its customers as a result of the sale of goods or services is called ___ _____
Account Receivable
Bringing the various items of information together to determine a result is called_______
Summarizing
An unwritten promise to pay a supplier for assets purchased or services received is called the _____ _____ account
Accounts Payable
The amount a business charges customers for products sold or services performed is called _____
Revenues
A business that makes a product to sell is called a _____ _____
Manufacturing Business
Entering financial information about events affecting the company into the accounting system is called a _______
Recording
Services focused on tax planning, preparing tax returns, and dealing with the Internal Revenue Service and other governmental agencies is called _____ _______
Tax Accounting
Sorting and grouping similar items together rather than merely keeping a simple, diary-like record of numerous events is called ____________
Classifying
Includes preparing various reports and financial statements and analyzing operating, investing, and financing decisions is called ____ ______
Financial Accounting
A business that buys products to sell is called a _____ _______
Merchandising Business
Telling the results of the financial information is called ________
Reporting
The amount by which the business assets exceed the business liabilities is called ______ ______
Owner's Equity
Something owed to another business entity is referred to as a __________
Liability
Reviewing the operating and accounting control procedures adopted by management to make sure the controls are adequate and being followed; assuring that accurate and timely information is provided is called ______ _______
Internal Auditing
An item that is owned by a business and will provide future benefits is referred to as a ______
Asset
A business that provides a service is called a _____ _____
Service Business
An act passed by Congress to help improve reporting practices of public companies is called the _____ _______
Sarbanes- Oxley Act
A type of ownership structure in which stockholders own the business. The owners’ risk is usually limited to their initial investment, and they usually have very little influence on the business decisions is called a ____________
Corporation
Deciding the meaning and importance of the information in various reports is called ______
Interpreting
A type of ownership structure in which more than one person owns the business is called a _____
Partnership
A type of ownership structure in which one person owns the business is called a ____ ____
Sole Proprietor
Withdrawals that reduce owner’s equity as a result of the owner taking cash or other assets out of the business for personal use is also referred to as _______
Drawing