Accounting Fundamentals

Concept: a business's records should never be mixed with an owner's personal records and reports

• adequate disclosure

• business entity assumption

• objectivity assumption

• going concern assumption

Concept: Financial statements are prepared with the expectation that business will remain in operation indefinately

• going concern

• materiality

• accounting period cycle

• matching revenue with expenses

Planning, recording, analyzing, and interpreting financial information

• Accounting

• Asset

• Liability

• Owner's Equity

Using day to day Financial Data to make informed business decisions

• Accounting

• Asset

• Liability

• Finance

Anything of value that is owned

• Accounting

• Asset

• Liability

• Owner's Equity

An amount owed by a business

• Accounting

• Asset

• Liability

• Owner's Equity

A formal examination of a company's financial records

• Fiscal Period
• budget
• audit
• revenue

Money owed by a business 

• assets
• loss
• profit
• liabilities

a written report which describes the financial health of a company

• income statement
• financial statement
• Owner's Equity
• statement of change

The amount of money a company earns

• revenue
• assets 
• audit
• equity