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Related Flashcards
Related Topics
Cards In This Set
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Accounting Equation
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Assets = Liabilities + Equity (also called Balance Sheet Equation)
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Debit
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Increases asset and expense accounts (left)
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T Account
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Tool used to show the show the effects of transactions and events on accounts
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Bank Reconciliation
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Report explaining the difference between the book (company) balance of cash and the banks balance
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Contra Account
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Account linked with another account and having and opposite normal balance
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Managerial Accounting
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Aimed at serving the decision-making needs of internal users
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Closing entries
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Recorded at the end of each accounting period to transfer end-of-period balances in revenue, gain ,expense, loss, and withdrawal accounts to the capital account
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Prepaid Expenses
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Items paid for in advance of receiving their benefits
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Classified Balance Sheet
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Presents assets and liabilities in relevant subgroups, including current and non current classifications
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Interim Financial Statements
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Cover periods of less than one year, usually based one, three, or six month periods
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Payee of a Note
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Entity to whom a note is made payable
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Accounting Information System
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People, records, and methods that collect and process data from transactions and events, organize them in useful forms, and communicate results to decision makers
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Enterprise Resource Planning (ERP)
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Programs that manage a company's vital operations, which range from order taking to production to accounting
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Trading Securities
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Investments in debt and equity securities that the company intends to actively trade for profit
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Change in Accounting Estimate
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Results from new information, developments, or improved judgement that impacts current and future periods
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