Accounting terms-Part 2

studied byStudied by 16 people
5.0(2)
get a hint
hint

asset

1 / 40

encourage image

There's no tags or description

Looks like no one added any tags here yet for you.

41 Terms

1

asset

property or economic resources owned by a business or individual

New cards
2

liability

amounts owed to creditors; claims of creditors to the assets of a business

New cards
3

owner's equity

total assets of the business minus liabilities; remaining funds are categorised as owner's equity

New cards
4

cash

paper money, coin, bank balances, checks, etc., usually a current asset, but if use is restricted, could be a long term asset

New cards
5

skimming

failure to report all cash receipts in order to evade income taxes

New cards
6

separation of duties

money handling duties (cashier) separate from recording duties (book-keeping)

New cards
7

deposits in transit

bank has not yet recorded company's deposit on books

New cards
8

outstanding checks

checks that have been written, but have not yet cleared the bank

New cards
9

overdraft

this happens when a check is written for more money than is deposited in the account

New cards
10

petty cash fund

fund for purchases of the small variety; employees make purchases and submit receipts for reimbursement.

New cards
11

accounts receivable

money owed to a company by it's debtors

New cards
12

inventory

merchandise a firm holds or manufactures

New cards
13

land

any property a firm owns and uses for operations

New cards
14

equipment

office equipment, furniture, fixtures, etc. (CNC mills, tools, chairs)

New cards
15

intangible assets

assets that cannot be physically touched (trademarks, patents, copyrights)

New cards
16

patent

exclusive right to the use of an invented asset

New cards
17

copyright

exclusive right to the use of something written, such as music, or a book

New cards
18

depletion

deprecation of natural resources

New cards
19

franchises

the right granted to sell services in a certain manner allowed by a government or by private firm

New cards
20

accounts payable

money owed to a company by it's creditors

New cards
21

accounting

an information system relating to the financial activities of a business

New cards
22

cash basis accounting

report revenues when cash is received, report expenses when cash is paid

New cards
23

accrual basis accounting

report revenue in the period when cash is earned

New cards
24

basic accounting equation

assets = liabilities + owner's equity; show's relationship between assets and total equity

New cards
25

equity

in finance, in general, you can think of equity as ownership in any asset after all debts associated with that asset are paid off; for example, a car or house with no outstanding debt is considered the owner's equity because he or she can readily sell the item for cash

New cards
26

business transaction

a business event, such as buying, selling, or exchange of goods that causes a change in assets, liabilities, or equity

New cards
27

capital

money invested in a business by an owner or shareholders; owner's equity in a business; the owner's claim or right to a business asset or assets

New cards
28

credit

an agreement to pay for a purchase at a later time; entered on the right side of a T account

New cards
29

creditor

a person or business to which money is owed

New cards
30

expense

cost of goods or services that are used to operate a business; expenses decrease owners equity

New cards
31

on account

buying on credit; agreeing to pay for a product or service at a later date

New cards
32

property

items of value that are owned or controlled by a business; economic resources of a business

New cards
33

property rights

creditor's or owner's financial claims to assets of a business

New cards
34

revenue

income earned by a business from it's operations; revenue increases owner's equity, assuming expenses remain constant or do not exceed the increase in revenue

New cards
35

withdrawal

removal of cash or other assets from a business or account

New cards
36

merchandise sold equation

beginning merchandise inventory + net purchases = cost of merchandise available for sale - ending merchandise inventory = cost of merchandise available for sale

New cards
37

gross profit equation

net sales - cost of merchandise sold = gross profit equation

New cards
38

net purchases equation

purchases + transportation in - purchases discounts - purchases returns and allowances = net purchases

New cards
39

net sales equation

sales - sales discounts - sales returns and allowances = net sales

New cards
40

component percentage of net income

net income / sales

New cards
41

component percentage of gross profit

gross profit / sales

New cards

Explore top notes

note Note
studied byStudied by 2 people
Updated ... ago
5.0 Stars(1)
note Note
studied byStudied by 19 people
Updated ... ago
5.0 Stars(1)
note Note
studied byStudied by 13 people
Updated ... ago
5.0 Stars(1)
note Note
studied byStudied by 4 people
Updated ... ago
5.0 Stars(1)
note Note
studied byStudied by 1 person
Updated ... ago
5.0 Stars(1)
note Note
studied byStudied by 36 people
Updated ... ago
5.0 Stars(1)
note Note
studied byStudied by 17 people
Updated ... ago
5.0 Stars(2)
note Note
studied byStudied by 9500 people
Updated ... ago
4.7 Stars(63)

Explore top flashcards

flashcards Flashcard20 terms
studied byStudied by 3 people
Updated ... ago
4.5 Stars(2)
flashcards Flashcard45 terms
studied byStudied by 29 people
Updated ... ago
5.0 Stars(1)
flashcards Flashcard31 terms
studied byStudied by 16 people
Updated ... ago
5.0 Stars(1)
flashcards Flashcard68 terms
studied byStudied by 14 people
Updated ... ago
5.0 Stars(1)
flashcards Flashcard32 terms
studied byStudied by 14 people
Updated ... ago
5.0 Stars(1)
flashcards Flashcard53 terms
studied byStudied by 102 people
Updated ... ago
5.0 Stars(1)
flashcards Flashcard39 terms
studied byStudied by 27 people
Updated ... ago
4.0 Stars(1)
flashcards Flashcard54 terms
studied byStudied by 60 people
Updated ... ago
5.0 Stars(1)