Chapter 1 - Introduction to Accounting and Business
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Across
Money received for interest
A claim against the customer created by selling merchandise
The liability created by a purchase on account
A concept of accounting that determines the amount initially entered into the accounting records for purchases
Assets used up or services consumed in the process of generating revenues
Fees Earned – Revenue from providing services
A business organized under state or federal statutes as a separate legal entity
A concept of accounting that list the economic data in the accounting system to data related directly to the activities of the busi
A concept of accounting in which expenses are matched with the revenue generated during a period by those expenses
The branch of accounting that is concerned with recording transactions using generally accepted accounting principles (GAAP) for a business or other economic unit and with a periodic preparation of various statements from such records
Assets = Liabilities + Owner’s Equity
Generally accepted guidelines for the preparation of financial statements
A list of the assets, liabilities, and owner’s equity as of a specific date, usually at the close of the last day of a month or a year
The amount by which revenues exceed expenses
Down
The rights of creditors that represent debts of the busine
A summary of the revenue and expenses for a specific period of time, such as a month or a year
Financial reports that summarize the effects of events on a business
Moral principles that guide the conduct of individuals
An economic event or condition that directly changes an entity’s financial condition or directly affects its results of operations
The amount by which revenues exceed expenses
The authoritative body that has the primary responsibility for developing accounting principles
The resources owned by a business
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