Financial Accounting Flashcards
defined as the process of identifying, measuring and communicating
Accounting
the process of preparing and distributing accounting records to users
Communicating
writing a business data such as economic transaction / events
Recording
similar items are group under common characteristics
Classifying
Financial reports or statements
Summarizing
A L P I E
A - Assets
L - Liabilities
P - Proprietorship / Equity
I - Income / Revenue
E - Expense
Forms of Business
Organization :
- Sole Proprietorship
- Owned by one individual
- Partnership
- Two or more person
- Corporation
- Artificial being
Forms of Business :
- Service Provider
- Offer service
- Merchandising
- Buy & Sell
- Manufacturing
- Manufacture / Create
Accounting Assumptions :
- Accrual
- Going Concern
Accounting Process :
A - Analyzing
J - Journalyzing
P - Posting
U - Unadjusted Trial Balance
A - Adjusting Entries
F - Financial Statements
C- Closing Entries
P - Post-closing Trial Balance
R - Reversing Entries
Are resources controlled and owned by enterprises as a result of past transactions which future economic benefits our expected to flow to the enterprise
Assets
Are present obligations of the enterprise arising from past transactions, the settlement of which is expected to result is an outflow from the enterprise
Liabilities
Is the residual enterest in the assets after deducting liabilities
Capital
Inflow of future economic benefits that increases equity
Income
Outflow or consumption of future economic benefits that decreases equity
Expense
