6.01 Vocab Quiz

Accounts Payable are liabilities of a business and represent money owed to others.

A method of accounting that records transactions at the time they occur even if no money changes hands at the time

A type of accounting that involves preparing and reporting financial data to internal users, usually managers, who need financial information to control day-to-day operations and to make financial decisions and plans affecting the business

Used to reduce and eliminate costs in a business. It is used to determine a price for a product or service that will allow earnings of a reasonable profit.

Assets of a business and represent money owed to a business by others.

The process of keeping and interpreting financial records.

Provides a snapshot of a business' assets, liabilities, and equity on a given date.

The methods and procedures used in consistently handling the business's financial information.

An accounting method in which income and expenditures are recorded at the time the money changes hands.

A balance on the left side of an account in the general ledger. Typically expenses, losses, and assets have debit balances.