Accounting Flashcards
Accountant
a person responsible for interpreting financial data
Asset
anything of value that is owned
Basic accounting equation
a formula that illustrates the relationship between assets, liabilities, and capital
bookkeeper
a person responsible for recording business transactions
Business entity
the existence of a business as an artificial individual
Business transaction
Business activity that causes changes in the value of assets, liabilities and capital
Capital
value of the business
Corporation
An association of individuals united for a common purpose to use a common name and to change members without dissolving the association; a business chartered under state law and owned by stockholders.
Drawing
an owners withdrawal of cash from his business for personal use
Equities
the claims against the assets of a business
Fiscal period
the period of time that the books are open to record transactions and summarize accounting information
Liability
anything that is owed
Partnership
an association of two or more persons to carry on as co-owners of a business for profit
Revenue
the increase in owners equity caused by income from the sale of goods and services
Sole proprietorship
a busines is owned and managed by one person
