Terms in this set (66)
Account Balance Difference between total debits and total credits (including the beginning
balance) for an account.
Accounting comprehensive system for collecting, analyzing, and communicating
financial information
Accounting Cycle for a given time period, the cycle of recording accounting data, adjusting
the accounts, preparing the financial statements, and closing the temporary
accounts; when one accounting cycle ends a new one begins
Accounting Event Economic occurrence that changes a company's assets, liabilities, or equity
Accounting Period Time span covered by the financial statements; normally one year, but may
be a quarter, month or some other time interval
Accrual Accounting recognition of revenue or expense in a period before cash is
exchanged
, Accrual Accounting Accounting system which recognizes revenues when earned and expenses
when incurred regardless of when the related cash is exchanged
Adjusting Entry Entry that updates account balances prior to preparing financial statements;
a bookkeeping tool. Adjusting entries never affect the Cash account
Adverse Opinion Opinion issued by a certified public accountant that means one or more
departures from GAAP in a company's financial statements are so very
material the auditors believe the financial statements do not fairly represent
the company's status
Allocations Recognizing expenses by systematically assigning the cost of an asset to
periods of use
American Institute of CPA's National association that serves the education and professional interests of
member of the public accounting profession; membership is voluntary
Annual Reports Document companies publish to provide information, including financial
statements, to stockholders
Account Balance Difference between total debits and total credits (including the beginning
balance) for an account.
Accounting comprehensive system for collecting, analyzing, and communicating
financial information
Accounting Cycle for a given time period, the cycle of recording accounting data, adjusting
the accounts, preparing the financial statements, and closing the temporary
accounts; when one accounting cycle ends a new one begins
Accounting Event Economic occurrence that changes a company's assets, liabilities, or equity
Accounting Period Time span covered by the financial statements; normally one year, but may
be a quarter, month or some other time interval
Accrual Accounting recognition of revenue or expense in a period before cash is
exchanged
, Accrual Accounting Accounting system which recognizes revenues when earned and expenses
when incurred regardless of when the related cash is exchanged
Adjusting Entry Entry that updates account balances prior to preparing financial statements;
a bookkeeping tool. Adjusting entries never affect the Cash account
Adverse Opinion Opinion issued by a certified public accountant that means one or more
departures from GAAP in a company's financial statements are so very
material the auditors believe the financial statements do not fairly represent
the company's status
Allocations Recognizing expenses by systematically assigning the cost of an asset to
periods of use
American Institute of CPA's National association that serves the education and professional interests of
member of the public accounting profession; membership is voluntary
Annual Reports Document companies publish to provide information, including financial
statements, to stockholders
