Accounting Terminology Fundamentals: Assets, Liabilities, Equity, and Revenue Recognition

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Finance - Personal Finance

andrsonztdc Created by 10 mon ago

Cards in this deck(63)

What is the term for the cost of borrowing money, often expressed as a percentage of the principal?

What accounting method recognizes revenue and expenses when they are incurred, regardless of when cash transactions occur?

Which accounting method recognizes revenue and expenses only when cash is exchanged?

What is the term for something a company owns that is recorded on the debit side of the balance sheet?

What is the term for something a company owes, typically recorded on the credit side of the balance sheet?

What is the term for the residual interest in the assets of the entity after deducting liabilities?

What is the term for profits that are not distributed as dividends but are kept in the business?

What is the term for the ownership interest in a corporation, represented by shares?

What is the term for money coming into a business from its core operations?

What is the term for money going out of a business related to its operations?

What is the term for payments made to shareholders from retained earnings?

What is the term for the primary activities a business engages in to generate revenue?

What financial statement reports a company's revenues and expenses over a specific period?

What is the accounting principle that assumes a company will continue to operate indefinitely?

What is the term for the significance of financial information to decision-making?

What type of accounting provides information to external users such as investors and creditors?

What are the transactions called that involve a company's interactions with investors and creditors?

What financial statement tracks the cash inflows and outflows of a business?

What is the term for intermediaries who buy from manufacturers and sell to retailers?

What is the term for businesses that sell products directly to the end user?

What is the term for liabilities arising from everyday purchases?

What is the term for liabilities associated with large or uncommon purchases?

What is the term for documents that provide evidence of a transaction between two parties?

What is the term for the activity of buying and selling assets to generate profit?

What is the term for raising and repaying funds for business purposes?

What is the order of liquidity for assets?

What is the term for the ease with which an asset can be converted into cash?

What is the term for financing that involves borrowing money, which must be repaid?

What is the term for financing that involves selling ownership stakes in a company?

What is the term for an account that reduces the balance of a related account?

What are the two methods used to account for uncollectible accounts receivable?

What is the method of writing off uncollectible accounts when they are deemed uncollectible, not in accordance with GAAP?

What is the method that estimates uncollectible accounts based on a percentage of sales?

What is the term for a reduction in the sale price of a product?

What is the term for a product returned to the seller, resulting in a cash refund?

What is the term for a product returned to the seller, resulting in the cancellation of accounts receivable?

What is the term for a reduction in the amount owed to encourage early payment?

What is the inventory valuation method that identifies each item sold individually?

What is the inventory system that calculates the cost of goods sold at the end of the period?

What is the inventory system that calculates the cost of goods sold after each sale?

What is the depreciation method where the annual depreciation expense remains constant?

What is the depreciation method based on the number of units used, produced, or consumed?

What is the term for a depreciation method that recognizes depreciation faster than the straight line method?

What is the term for the sale or disposal of an asset?

What is the term for when the sale price of an asset is greater than its basis?

What is the term for when the sale price of an asset is less than its basis?

What financial statement provides a snapshot of a company's financial position at a specific point in time?

What is the term for a business structure with a single owner?

What is the term for a business structure with two or more entities sharing ownership?

What is the term for a partnership where each partner is liable for the decisions of all partners?

What is the term for a business structure where ownership is represented by stockholders?

What is the term for a business structure offering limited liability and pass-through taxation?

What is the delivery term that designates a shipment as delivered free of charge to a buyer?

What is the term for when the seller controls shipping methods and ownership changes upon delivery?

What is the term for when the buyer picks up the goods and ownership changes at that point?

What is the term for when the fair market value of inventory drops below its cost?

What is the term for the amount paid to acquire an asset?

What is the term for the allocation of an asset's cost over its useful life?

What is the term for the exclusive right to manufacture a product or use a process?

What is the term for the exclusive right of protection for a published work?

What is the term for a word, symbol, or slogan that distinctively identifies a company?

What is the term for local outlets that pay for the exclusive right to use a company's name and sell its products?

What is the term for the value of a company acquired over its book value, often due to reputation or brand?

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Accounting Terminology Fundamentals: Assets, Liabilities, Equity, and Revenue Recognition

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