Unit 1A (FINACCT)

Liability created by buying goods or services on credit.

Amounts due from customers for credit sales.

Information and measurement system that identifies, records, and communicates relevant information about a company’s business activities.

Subtracts expenses from revenues to yield a net income or loss over a specified period of time.

Corporation’s distributions of assets to its owners.

Owner’s claim on the assets of a business; equals the residual interest in an entity’s assets after deducting liabilities.

Lists types and dollar amounts of assets, liabilities, and equity at a specific date.

Cumulative income less cumulative losses and dividends.

Prescribes that revenue is recognized when earned.

Categorizes net cash provided or used during a period as operating, investing and financing activities, and reconciles beginning and ending cash and cash equivalents.

Managerial accounting is aimed at helping internal users make better decisions.

Financial accounting is aimed at helping external users understand the organization's business transactions.

Revenue should be recognized when it is earned.

Cash flow records cash when it is received.

Assets are resources a business owns or controls that are expected to provide current and future benefits to the business.