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25 Cards in this Set
- Front
- Back
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Property, plant and equipment or fixed asses or plant assets |
Assets of a relatively permanent nature that are being used in the business and are not intended for resale. |
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Relevance |
The quality of information that indicates the information makes a difference in a decision. |
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Current Ratio |
A measure used to evaluate a company’s liquidity and short-term debt-paying ability, computed by dividing current assets by current liabilities. |
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Statement of stockholders' equity |
A financial statement that presents the factors that caused stockholders’ equity to change during the period, including those things that caused retained earnings to change. |
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Materiality |
The constraint of determining whether an item is large enough to likely influence the decision of an investor or creditor. |
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Economic entity ssumption |
An assumption that economic events can be identified with a particular unit of accountability. |
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Current liabilities |
Obligations that companies reasonably expected to pay within the next year or operating cycle, whichever is longer. |
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Consistency |
Use of the same accounting principles and methods from year to year within a company. |
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Free Cash Flow |
Cash provided by operating activities adjusted for capital expenditures and dividends paid. |
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Cost principle or historical cost principle |
An accounting principle that states that companies should record assets at their cost. |
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Ledger |
The group of accounts maintained by a company. |
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Chart of Accounts |
A list of a company’s accounts. |
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Journalizing |
The procedure of entering transaction data in the journal. |
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Accounting Transactions |
Events that require recording in the financial statements because they involve affect assets, liabilities, or stockholders’ equity. |
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Journal |
An accounting record in which transactions are initially recorded in chronological order. |
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Account |
An individual accounting record of increases and decreases in a specific asset, liability, and stockholders’ equity items. |
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Double-entry System |
A system that records the dual effect of each transaction in appropriate accounts |
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Posting |
The procedure of transferring journal entries to the ledger accounts. |
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Debit |
The left side of an account. |
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Trial Balance |
A list of accounts and their balances at a given time. |
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Balance Sheet |
The financial statement which presents picture on a particular date of what a business owns and owes is... |
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Retained Earnings Statement |
Net income shown on the income statement is added to the beginning of the retained earnings in the... |
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Income Statement |
To report the success or failure of the company's operations during the period is the purpose of the.. |
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Intangible Assets |
Noncurrent assets, assets that have no physical substances. examples are goodwill, patents, copyrights and trademarks or trade names |
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