Accounting 200 Exam 1 Verified Guide

Accounting 200 Exam 1 Verified Guide account ️the record of the changes that have occurred in a particular asset, liability, or stockholders' equity during a period. The basic summary device of accounting. account format ️a balance sheet format that lists assets on the left and liabilities an stockholder's equity on the right. account payable ️a liability backed by the general reputation and credit standing at the debtor. accounting ️the information system that measures business activities, processes that information into reports and financial statements, and communicates the results to decision makers. accounting equation ️assets=liabilities+owners equity accrual ️an expense or revenue that occurs before the business pays or receives cash. An accrual is the opposite of a deferral. accrual accounting ️accounting that records the impact of a business event as it occurs, regardless of whether the transaction affected cash. accrued expense ️an expense incurred but not yet paid in cash. accrued liability ️a liability for an expense that has not yet been paid by the company. accrued revenue ️a revenue that has been earned but not yet received in cash. accumulated depreciation ️the cumulative sum of all depreciation expense from the date of acquiring a plant asset. adjusted trial balance ️a list of all the ledger accounts with their adjusted balances. asset ️an economic resource that is expected to be of benefit in the future. balance sheet ️list of an entity's assets, liabilities, and owner's equity as of a specific date. also called the statement of financial position. board of directors ️group elected by the stockholders to set policy for a corporation and to appoint its officers. book value (of a plant asset) ️the asset's cost minus accumulated depreciation. capital ️another name for the owner's equity of a business cash ️money and any medium of exchange that a bank accepts at face value. cash basis accounting ️accounting that records only transactions in which cash is received or paid. chart of accounts ️list of a company's accounts and their account numbers. classified balance sheet ️a balance sheet that shows current assets separate from long term ass