ACC 101: Accounting & Business
Finance Key Terms with
Definitions,Complete Exam
Revision Study Guide
Accountant - CORRECT ANSWER -an individual who has had specialized training in
accounting procedures"
"Accounting - CORRECT ANSWER -The process of keeping and interpreting
financial records"
"Accounting department - CORRECT ANSWER -a special department responsible
for the firm's accounting needs"
"Accounting system - CORRECT ANSWER -the methods and procedures used in
handling a business's financial information"
"Accounts receivable - CORRECT ANSWER -Monies owed to a business by its
customers"
"Accrual accounting method - CORRECT ANSWER -A method of accounting that
records transactions at the time they occur even if no money changes hand at the
time"
"Assets - CORRECT ANSWER -anything of value that a business or individual
owns"
"Balance sheet - CORRECT ANSWER -a financial statement that captures the
financial condition of the business at that particular moment"
"Bookkeeping - CORRECT ANSWER -The step in the accounting process that
actually records the business's financial information"
"Cash - CORRECT ANSWER -currency and coins"
"Cash accounting method - CORRECT ANSWER -an accounting method in which
income and expenditures are recorded at the time the money changes hands"
, "Cost of goods - CORRECT ANSWER -the amount of money a business pays for the
products it sells of for the raw materials from which it produces goods to sell"
"Credit - CORRECT ANSWER -the arrangement by which businesses or individuals
can purchase now and pay later"
"Creditors - CORRECT ANSWER -Individuals or businesses to whom a business
owes money or from whom it wants it to borrow money"
"Current liabilities - CORRECT ANSWER -debts that must be paid within a year"
"Debts - CORRECT ANSWER -amounts of money business or individuals owe to
others"
"Disbursement journal - CORRECT ANSWER -An accounting record for recording
daily expenditures"
"Economic forecast - CORRECT ANSWER -a prediction of what may happen in the
nations economy"
"Expenses - CORRECT ANSWER -The monies that a business spends"
"Financial statement - CORRECT ANSWER -A summary of accounting information"
"Fixed assets - CORRECT ANSWER -items of value a business owns that are not
expected to change (buildings)"
"Income - CORRECT ANSWER -money received by a business or an individual from
outside sources for supplying goods and services to customers"
"Income statement - CORRECT ANSWER -A financial summary that shows how
much money the business has made or has lost; also called the profit-and-loss
statement"
"Investors - CORRECT ANSWER -those who invest their funds in a business, may
be owners or stockholders"
"Journal - CORRECT ANSWER -a special book or computer program in which a
business's transactions are recorded in the order in which they occur"
"Ledger - CORRECT ANSWER -the accounting record for a specific department or
area of the business"
"Liabilities - CORRECT ANSWER -debts that the business owes"
Finance Key Terms with
Definitions,Complete Exam
Revision Study Guide
Accountant - CORRECT ANSWER -an individual who has had specialized training in
accounting procedures"
"Accounting - CORRECT ANSWER -The process of keeping and interpreting
financial records"
"Accounting department - CORRECT ANSWER -a special department responsible
for the firm's accounting needs"
"Accounting system - CORRECT ANSWER -the methods and procedures used in
handling a business's financial information"
"Accounts receivable - CORRECT ANSWER -Monies owed to a business by its
customers"
"Accrual accounting method - CORRECT ANSWER -A method of accounting that
records transactions at the time they occur even if no money changes hand at the
time"
"Assets - CORRECT ANSWER -anything of value that a business or individual
owns"
"Balance sheet - CORRECT ANSWER -a financial statement that captures the
financial condition of the business at that particular moment"
"Bookkeeping - CORRECT ANSWER -The step in the accounting process that
actually records the business's financial information"
"Cash - CORRECT ANSWER -currency and coins"
"Cash accounting method - CORRECT ANSWER -an accounting method in which
income and expenditures are recorded at the time the money changes hands"
, "Cost of goods - CORRECT ANSWER -the amount of money a business pays for the
products it sells of for the raw materials from which it produces goods to sell"
"Credit - CORRECT ANSWER -the arrangement by which businesses or individuals
can purchase now and pay later"
"Creditors - CORRECT ANSWER -Individuals or businesses to whom a business
owes money or from whom it wants it to borrow money"
"Current liabilities - CORRECT ANSWER -debts that must be paid within a year"
"Debts - CORRECT ANSWER -amounts of money business or individuals owe to
others"
"Disbursement journal - CORRECT ANSWER -An accounting record for recording
daily expenditures"
"Economic forecast - CORRECT ANSWER -a prediction of what may happen in the
nations economy"
"Expenses - CORRECT ANSWER -The monies that a business spends"
"Financial statement - CORRECT ANSWER -A summary of accounting information"
"Fixed assets - CORRECT ANSWER -items of value a business owns that are not
expected to change (buildings)"
"Income - CORRECT ANSWER -money received by a business or an individual from
outside sources for supplying goods and services to customers"
"Income statement - CORRECT ANSWER -A financial summary that shows how
much money the business has made or has lost; also called the profit-and-loss
statement"
"Investors - CORRECT ANSWER -those who invest their funds in a business, may
be owners or stockholders"
"Journal - CORRECT ANSWER -a special book or computer program in which a
business's transactions are recorded in the order in which they occur"
"Ledger - CORRECT ANSWER -the accounting record for a specific department or
area of the business"
"Liabilities - CORRECT ANSWER -debts that the business owes"
