Accounts payable Amounts owed to companies for items or services purchased top top credit.

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Accounts unification Amounts due native customers for services currently provided.

Assets Things of worth owned by the business. Examples incorporate cash, machines, and also buildings. To their owners, legacy possess service potential or energy that can be measured and also expressed in money terms.

Balance sheet Financial statement the lists a this firm assets, liabilities, and also stockholders’ same (including dollar amounts) as of a specific moment in time. Additionally called a statement of jae won position.

Business entity concept (or accounting entity concept) The separate visibility of the business organization.

Capital share The title given to an equity account reflecting the invest in a business corporation by its stockholders.

Continuity See going-concern concept.

Corporation Business integrated under the laws of one of the states and also owned by a few stockholders or by hundreds of stockholders.

Cost Sacrifice made or the resources provided up, measured in money terms, to get some preferred thing, such as a brand-new truck (asset).

Dividend Payment (usually the cash) come the owner of a corporation; that is a circulation of revenue to owners quite than an expense of act business.

Entity A service unit the is considered to have an visibility separate and apart from its owners, creditors, employees, customers, other interested parties, and also other businesses, and also for which bookkeeping records are maintained.

Equities Broadly speaking, all cases to, or interests in, assets; includes liabilities and also stockholders’ equity.

Equity proportion A ratio uncovered by dividing stockholders’ equity by full equities (or total assets).

Exchange-price (or cost) ide (principle) The target money prices identified in the exchange procedure are provided to record many assets.

Expenses Costs occurs to develop revenues, measure up by the assets surrendered or consumed in offer customers.

Going-concern (continuity) concept The assumption by the accountant that unless solid evidence exist to the contrary, a organization entity will proceed operations into the unknown future.

Income explain Financial explain that mirrors the revenues and also expenses and reports the benefit of a company organization because that a stated duration of time. Sometimes called an earnings statement.

Liabilities Debts fan by a business—or creditors’ equity. Examples: note payable, accounts payable.

Manufacturing service providers Companies the buy materials, transform them right into products, and then offer the products to other companies or to final customers.

Merchandising providers Companies the purchase goods ready for sale and also sell them come customers.

Money measurement ide Recording and reporting economic task in a common monetary unit of measure up such as the dollar.

Net revenue Amount through which the earnings of a period exceed the prices of the same period.

Net ns Amount whereby the expenses of a period exceed the profits of the very same period.

Notes payable Amounts owed to parties that loan the agency money after ~ the owner indicators a written commitment (a note) because that the company to repay every loan.

Partnership An unincorporated organization owned by 2 or much more persons associated as partners.

Periodicity (time periods) concept An presumption that one entity’s life can be meaningfully subdivided right into time durations (such together months or years) for objectives of report its financial activities.

Profitability Ability to generate income. The earnings statement shows a company’s profitability.

Retained revenue Accumulated net earnings less dividend distributions to stockholders.

Revenues Inflows of assets (such as cash) result from the revenue of commodities or the calculation of solutions to customers.

Service carriers Companies (such as accounting firms, law firms, or dry cleaning establishments) that perform services because that a fee.

Single ownership An unincorporated company owned by one individual and also often regulated by that individual.

Solvency Ability to pay debts as they end up being due. The balance sheet shows a that company solvency.

Source document Any created or printed proof of a company transaction that describes the necessary facts of the transaction, such together receipts because that cash payment or received.

Statement that cash flows Financial statement mirroring cash inflows and also outflows for a agency over a duration of time.

Statement the retained income Financial statement supplied to explain the alters in retained income that arisen between 2 balance sheet dates.

Stockholders’ same The owners’ attention in a corporation.

Stockholders or shareholders Owners of a corporation; lock buy share of stock, which space units of ownership, in the corporation.

Summary that transactions Teaching tool to present the impacts of transactions on the accountancy equation.

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Transaction A business activity or occasion that causes a measurable adjust in the items in the accountancy equation, assets = legal responsibility + Equity.