Chapter 1 - Introduction to Accounting
accounting - The process of identifying, measuring, and communicating economic
information to permit users to make informed judgments and decisions
accounting systems - The branch of accounting that covers the review of a firm's
entire information system, not just the accounting system
accrual basis accounting - System of reporting revenues and expenses in the
period in which they are considered to have been earned or incurred, regardless of the
actual time of collection or payment
adjusting entries - Entries required at the end of an accounting period to record
internal adjustments of various accounts due to the matching principle of accounting
assets - Resources available for use by the business - that is, anything owned by
the business that has monetary value
auditing - The branch of accounting that examines a firm's financial statements and
internal controls for the purpose of expressing opinions regarding the financial
statements
balance sheet - Statement of the financial position of the hospitality establishment
on a given date, giving the account balances for assets, liabilities, and ownership equity
bookkeeping - The recording and classification of transactions
business entity principle - An accounting principle that requires a business
maintain its own set of records and accounts that are separate from other financial
interests of its owners
cash basis accounting - System of reporting revenues and expenses at the time
they are collected or paid, respectively
conservatism principle - An accounting principle that requires accounting
procedures that recognize expenses as soon as possible, but delay the recognition of
revenues until they are ensured
consistency principle - An accounting principle that requires that once an
accounting method has been adopted, it should be followed from period to period in the
future unless a change in accounting methods is warranted and disclosed
continuity of the business unit principle (going concern principle) - The assumption
in preparing the accounting records and reports that the business will continue
indefinitely and that liquidation is not a prospect
accounting - The process of identifying, measuring, and communicating economic
information to permit users to make informed judgments and decisions
accounting systems - The branch of accounting that covers the review of a firm's
entire information system, not just the accounting system
accrual basis accounting - System of reporting revenues and expenses in the
period in which they are considered to have been earned or incurred, regardless of the
actual time of collection or payment
adjusting entries - Entries required at the end of an accounting period to record
internal adjustments of various accounts due to the matching principle of accounting
assets - Resources available for use by the business - that is, anything owned by
the business that has monetary value
auditing - The branch of accounting that examines a firm's financial statements and
internal controls for the purpose of expressing opinions regarding the financial
statements
balance sheet - Statement of the financial position of the hospitality establishment
on a given date, giving the account balances for assets, liabilities, and ownership equity
bookkeeping - The recording and classification of transactions
business entity principle - An accounting principle that requires a business
maintain its own set of records and accounts that are separate from other financial
interests of its owners
cash basis accounting - System of reporting revenues and expenses at the time
they are collected or paid, respectively
conservatism principle - An accounting principle that requires accounting
procedures that recognize expenses as soon as possible, but delay the recognition of
revenues until they are ensured
consistency principle - An accounting principle that requires that once an
accounting method has been adopted, it should be followed from period to period in the
future unless a change in accounting methods is warranted and disclosed
continuity of the business unit principle (going concern principle) - The assumption
in preparing the accounting records and reports that the business will continue
indefinitely and that liquidation is not a prospect
