Final Review terms

Account

• The difference between the increases and decreases in an account.

• The name given to an account.

• Someone who owns, operates, and takes the risk of a business venture.

• A record that summarizes all the transactions pertaining to a single item in the accounting equation.

Account Balance

• A formal written document that describes the nature of a business and how it will operate.

• The amount remaining after the value of all liabilities is subtracted from the value of all assets.

• The difference between the increases and decreases in an account.

GAAP

• The process of planning, recording, analyzing, and interpreting financial information.

• A planned process designed to compile financial data and summarize the results in accounting records and reports.

• Generally Accepted Accounting Principles. The standards and rules that accountants follow while recording and reporting financial activities.

Compound Interest

• An account used to summarize the owner’s equity in a business.

• Interest paid on an original amount deposited in a bank plus any interest that has been paid.

• The cost of goods or services used to operate a business.

Creditor

• The difference between assets and liabilities.

• Someone who owns, operates, and takes the risk of a business venture.

• A person or business to whom a liability is owed.

Charts of accounts

• An amount recorded on the left side of an account.

• The side of an account that is increased is called the normal balance of the account.

• A list of accounts used by a business.

Forensic Accountant

• The side of an account that is increased is called the normal balance of the account.

  
  

• An accountant who combines accounting and investigating skills to uncover suspected fraudulent business activity, or to prevent such activity.

  
  

• Amounts to be received in the future due to the sale of goods or services.

  
  

T account

• An accounting device used to analyze transactions.

  
  

• Amounts to be received in the future due to the sale of goods or services.

  
  

• An amount recorded on the right side of an account.

  
  

Accounts receivable

• An amount recorded on the right side of an account.

  
  

• An accountant who combines accounting and investigating skills to uncover suspected fraudulent business activity, or to prevent such activity.

• Amounts to be received in the future due to the sale of goods or services.

  
  

Accounts payable

• Amounts to be paid in the future for goods or services already acquired.

  
  

• An amount recorded on the right side of an account.

  
  

• An accounting device used to analyze transactions.