Acct 2101 - 8.26

Vocabulary flashcards covering introductory accounting definitions, regulatory structures, study tools, and components of the fundamental accounting equation.

SmartBook (SB) Assignments

Pre-lecture study assignments on McGraw Hill Connect designed for students to study concepts independently before attending lectures.

NotebookLM

An AI study tool powered by Google Gemini where users upload source material to create scoped study aids, quizzes, and podcasts grounded strictly in provided content.

Financial Accounting Standards Board (FASB)

A panel of experts sitting under the Securities and Exchange Commission that sets accounting rules in the United States.

Securities and Exchange Commission (SEC)

A government body that oversees United States capital markets.

Capital Markets

The macro ecosystem composed of norms, institutions, law systems, and enforceability of contracts where businesses and entities operate.

Liquidity

The ability to interact and transact easily and rapidly in business markets, underpinned by trust, reliability, and contract enforceability.

Asset

A resource owned or controlled by an entity stemming from past transactions, from which future economic benefit is expected.

Goodwill

An abstract asset accounted for during the purchase of a company, representing non-paper inherent values like brand power, customer loyalty, and recognition.

Liability

A contractual obligation arising from a past vendor or business transaction that results in a future outflow of economic resources, typically cash.

Equity

The residual claim on a company's assets after liabilities are deducted, representing the ownership interest of shareholders.

Fundamental Accounting Equation

The core balance relationship defined as $\text{Assets} = \text{Liabilities} + \text{Equity}$.

Contributed Capital

Also represented as common stock, it is the cash or capital provided to a company by owners in exchange for an ownership stake.

Retained Earnings

The cumulative profits kept within the company that are not paid out as dividends to shareholders.

Dividend

A distribution of company profits or return of capital paid out to shareholders.

Revenue

Inflows of assets or money generated specifically from providing goods or services to customers.

Expenses

Outflows or costs incurred to maintain business operations, which reduce overall equity.

Net Income

Also called earnings or the bottom line, it is calculated as total revenues minus total operational expenses.

Expanded Accounting Equation

The breakdown of the basic equation expressed as $\text{Assets} = \text{Liabilities} + \text{Common Stock} - \text{Dividends} + \text{Revenues} - \text{Expenses}$.

On Account

A term used when buying or selling goods and services on credit under a short-term agreement to pay or receive cash at a later date.

Accounts Payable

A short-term liability account representing a company's obligation to pay suppliers for goods or services bought on credit.

Accounts Receivable

An asset account representing the contractual claim to collect cash from customers who purchased goods or services on credit.