Basic Accounting Terms

A type of asset that represents physical goods for sale.

• Contributed Capital

• Inventory

• Cash in Banks

• Account Receivable

The portion of a business that belongs to the owners.

• Equity

• Revenue

• Assets

• Liabilities

Economic resources of the entity. Include such items as cash, accounts receivables, inventory, land, buildings, equipment, intangible assets and others.

• Income Statement

• Accounts Payable

• Cash Flows Statement

• Assets

Amounts owed to others relating to loans, credits and other types of obligations.

• Liabilities

• Owners Equity

• Revenue

• Assets

An accounting _____ is a clearly defined economic unit.

• unit

• account

• entity

• business

Accounting procedure of recoding every transaction with two or more accounts. For each transaction debits = credits.

• Double Entry Accounting

• Single Entry Accounting

• Debit Accounting

• Credit Accounting

Cost that occurs as part of a company's operating activities during a specified accounting period.

• Revenues

• Expenses

• Profit

• Retained Earnings

Fees earned from providing services and/or the amounts of products sold.

• Revenues

• Cost of Goods Sold

• Sales Price

• Owner's Equity

A ____ of accounts is a listing of the names of the accounts that a company has identified and made available for recording transactions in its general ledger.

• statement

• report

• list

• chart

It represents the corporation's cumulative earnings that have not been distributed to its stockholders.

• Retained Earnings

• Revenue

• Profit

• Dividends