APBP Module 1 Vocab

The function that is responsible for providing useful information to other functional areas and external parties.

• Income Statement

• Balance Sheet

• Accounting and information systems functions

• Accrual basis of accounting

A system in which income is measured as the difference between the sales (revenues) earned and the expenses incurred during the period, regardless of when cash is paid or received.

• Accounting and Information Systems Functions

• Accrual Basis of Accounting

• Balance Sheet

• Income Statement

The financial statement designed to show the ending amounts of the company’s assets, liabilities, and owner's equity.

• Accounting and Information Systems Functions

• Accrual Basis of Accounting

• Balance Sheet

• Income Statement

The concept that requires an accounting system to reflect only information about economic events that pertain to a particular entity.

• Business Entity Concept

• Going Concern concept

• Monetary Unit Concept

• Periodicity Concept

The concept that assumes that, absent any information to the contrary, the business entity will continue into the foreseeable future.

• Business Entity Concept

• Going Concern concept

• Monetary Unit Concept

• Periodicity Concept

The concept that asserts money is the common measurement unit of economic activity.

• Business Entity Concept

• Going Concern concept

• Monetary Unit Concept

• Periodicity Concept

The concept that requires that the success or failure of the business be determined at regular intervals.

• Business Entity Concept

• Going Concern concept

• Monetary Unit Concept

• Periodicity Concept

A system in which income is measured as the difference between the cash received from customers and the cash paid to employees and other suppliers of goods and services.

• Cash Basis Accounting

• Accrual Basis of Accounting

• Corporation

• Current Asset

A business entity that is legally separate and distinct from its owners.

• Corporation

• Sole-Proprietorship

An asset likely to be used or consumed within one year

• Current Asset

• Current Liability

• Long-term Asset

• Noncurrent Liability