Accounts payable Amounts owed to companies for goods or solutions purchased ~ above credit.
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Accounts unification Amounts due from customers because that services already provided.
Assets Things of worth owned through the business. Examples incorporate cash, machines, and buildings. To their owners, legacy possess service potential or utility that have the right to be measured and also expressed in money terms.
Balance sheet Financial statement that lists a company’s assets, liabilities, and stockholders’ equity (including dollar amounts) together of a particular moment in time. Also called a statement of gaue won position.
Business entity ide (or audit entity concept) The separate presence of the service organization.
Capital stock The title given to an equity account reflecting the invest in a service corporation through its stockholders.
Continuity See going-concern concept.
Corporation Business integrated under the legislations of one of the states and also owned by a few stockholders or by countless stockholders.
Cost Sacrifice make or the resources provided up, measure up in money terms, to obtain some preferred thing, such together a new truck (asset).
Dividend Payment (usually the cash) come the owner of a corporation; the is a distribution of earnings to owners rather than an price of doing business.
Entity A business unit that is deemed to have an presence separate and also apart indigenous its owners, creditors, employees, customers, various other interested parties, and other businesses, and for which accountancy records room maintained.
Equities Broadly speaking, all insurance claims to, or interests in, assets; has liabilities and also stockholders’ equity.
Equity proportion A ratio found by separating stockholders’ equity by full equities (or total assets).
Exchange-price (or cost) ide (principle) The objective money prices established in the exchange procedure are supplied to record most assets.
Expenses Costs occurs to create revenues, measured by the heritage surrendered or spend in offer customers.
Going-concern (continuity) principle The assumption by the accountant that unless solid evidence exists to the contrary, a company entity will proceed operations right into the indefinite future.
Income declare Financial statement that shows the revenues and expenses and also reports the benefit of a company organization because that a stated period of time. Sometimes dubbed an earnings statement.
Liabilities Debts owed by a business—or creditors’ equity. Examples: note payable, account payable.
Manufacturing service providers Companies the buy materials, transform them into products, and also then market the products to various other companies or to final customers.
Merchandising suppliers Companies that purchase items ready because that sale and sell them come customers.
Money measurement principle Recording and reporting economic activity in a usual monetary unit of measure up such together the dollar.
Net income Amount through which the profits of a period exceed the costs of the same period.
Net loss Amount whereby the costs of a duration exceed the revenues of the very same period.
Notes payable Amounts owed to parties that loan the company money after the owner indicators a written commitment (a note) because that the agency to repay every loan.
Partnership An unincorporated business owned by 2 or an ext persons associated as partners.
Periodicity (time periods) concept An assumption that one entity’s life deserve to be meaningfully subdivided right into time periods (such together months or years) for functions of report its economic activities.
Profitability Ability to generate income. The revenue statement reflects a that company profitability.
Retained earnings Accumulated net income less dividend distribution to stockholders.
Revenues Inflows of heritage (such together cash) result from the sale of assets or the calculation of solutions to customers.
Service service providers Companies (such as audit firms, law firms, or dry cleaning establishments) that execute services because that a fee.
Single ownership An unincorporated service owned by one individual and often regulated by the individual.
Solvency Ability to pay debts together they end up being due. The balance sheet shows a company’s solvency.
Source file Any written or printed evidence of a service transaction that defines the necessary facts of the transaction, such together receipts for cash paid or received.
Statement the cash operation Financial statement reflecting cash inflows and outflows for a agency over a period of time.
Statement of retained revenue Financial statement used to define the transforms in retained income that emerged between 2 balance sheet dates.
Stockholders’ same The owners’ attention in a corporation.
Stockholders or shareholders Owners of a corporation; lock buy shares of stock, which space units the ownership, in the corporation.
Summary of transactions Teaching tool to present the effects of transactions ~ above the audit equation.
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Transaction A business task or event that reasons a measurable change in the items in the accounting equation, assets = liabilities + Equity.