Business & Finance (276): Section 1 Finance: Business Accounting

something that has or produces value and is owned

• Possession

• Asset

• Resource

• Investment

refers to how easily an asset can be bought or sold on the market at the same price

• Liquidity

• Volatility

• Profitability

• Availability

in a business, this shows what the owner has contributed in addition to the retained earnings

• Equity

• Assets

• Liabilities

• Revenue

refers to how things lose value over time

• Appreciation

• Depreciation

• Amortization

• Deflation

refers to the actual cash that is going in and out of a business such as revenues or expenses due to business activities

• Cash Flow

• Profits

• Assets

• Liabilities

provide a set of standards for how accounting figures and statements such as income statements, balance sheets, and cash flow statements are prepared

• Generally Accepted Accounting Principles

• Financial Accounting Standards Board

• International Financial Reporting Standards

• Generally Accepted Auditing Standards

transactions are counted when when the orders are made or delivered, even if no cash has actually changed hands

• Accrual Method

• Cash Basis

• Double-Entry Bookkeeping

• Inventory Accounting

assets = liabilities + owners' equity

• Basic Financial Formula

• Fundamental Accounting Equation

• Accounting Principle

• Balance Sheet Formula

describes the steps taken in the accounting process; it is often shown as a circular diagram

• Financial Reporting Process

• Budgeting Process

• Auditing Process

• Accounting Cycle

transactions are counted when the money is actually received or the expenses are paid out, regardless of when an item was ordered or delivered

• Accrual Accounting

• Double-Entry Bookkeeping

• Cash Accounting

• Inventory Accounting