Accounting definition

the process of planning, recording, analyzing and interpreting financial information.

a planned process designed to compile financial data and summarize the results in accounting records and reports

financial reports that summarize the financial condition and operations of a business

formal report that shows what an individual owns, what an individual owes, and the difference between the two

Anything of value that is owned

An amount owed

The difference between personal assets and personal liabilities

The difference between assets and liabilities

The principles of right and wrong that guide an individual in making decisions

the use of ethics in making business decisions

A business that performs an activity for a fee

A business owned by one person

A formal written document that describes the nature of a business and how it will operate.

Generally Accepted Accounting Principles. The standards and rules the accountants follow while recording and reporting financial activities.

Financial rights to the assets of a business

the amount remaining after the value of all liabilities is subtracted from the value of all assets

the equation showing the relationship among assets, liabilities, and owers equity Asset = Liability + Owners Equity

Any business activity that changes assets, liabilities, or owners equity

A record that summarizes all the transactions pertaining to a single item in the accounting equation

The name given to an account

The difference between the increases and decreases in an account

An account used to summarize the owners equity in a business

A person or business to whom liability is owed

An increase in equity resulting from the sale of goods or services

A sale for which payment will be received at a later date

The cost of goods or services used to operate a business

Assets taken from the business for the owners personal use

An accounting device used to analyze transactions

An amount recorded on the left side of an account

An amount recorded on the right side of an account

The side of the account that is increased

A list of accounts used by a business

amounts to be paid in the future for goods or services already acquired

Amounts to be received in the future due to the sale of goods or services

A form for recording transactions in chronological order

Recording transactions in a journal

a business paper form which information is obtained

information for each transaction recorded in a journal

the recording of debit and credit parts of a transaction

a business form ordering a bank to pay cash

A form describing the goods or services sold, the quantity, the price, and the terms of sale

an invoice used as a source document for recording a sale on account

a business form giving written acknowledgement for cash

a form on which a brief message is written to describe a transactions

the number assigned to an account

an additional journal entry made to correct an incorrect journal entry

The procedure of arranging accounts in a general ledger, assigning account numbers, and keeping records current.

A ledger that contains all accounts needed to prepare financial statements

A group of accounts

Writing an account title and number on the heading of an account

Transferring information from a journal entry to a ledger account

Determining that the account of cash agrees with the balance of the cash account in the accounting records

the length of time for which a business summarizes its financial information and reports its financial performance.

A fiscal period consisting of 12 consecutive months

a columnar accounting form used to summarize the general ledger information needed to prepare financial statements

the total of all debit account balances must equal the total of all credit account balances.

cash paid for an expense in one fiscal period that is not used until a later period

Reporting income when it is earned and expenses when they are incurred

reporting income when the cash is received and expenses when the cash is paid

changes recorded on a work sheet to update general ledger accounts at the end of a fiscal period

a financial statement that reports the value of a business assets, liabilities, and owners equity on a specific date

a financial statement showing the revenue and expenses for a fiscal period

the difference between total revenue and total expense when total revenue is greater

the difference between total revenue and total expenes when total expenes are greater