chapter 4 accounting principles and practices

responsible for organizing a system of financial records, recording financial data, and preparing, analyzing, and interpreting financial statements.

• Transactions

• Accounts

• Equities

• Accounting

The financial records for each of the specific assets, liabilities, and categories of owner’s equity

• Transactions

• Accounts

• Equities

• Accounting

The financial claims on a company’s resources

• Transactions

• Accounts

• Equities

• Accounting

Assets = Liabilities + Owner’s Equity

• Transactions

• Equity

• Fundamental accounting equation

• Accounting

the act of recording a financial activity that results in a change in the value of an organization’s resources.

• Accrual accounting

• Accounting transaction

• Due care

• Accounting cycle

is a commitment to completing all tasks thoroughly and with the highest level of quality.

• Accrual accounting

• Accounting transaction

• Due care

• Accounting cycle

The accounting procedure that recognizes revenues and expenses when they are incurred rather than when cash is received or spent

• Accrual accounting

• Accounting transaction

• Due care

• Accounting cycle

a series of steps performed to ensure the completeness and accuracy of accounting records and to prepare summary financial statements.

• Accrual accounting

• Accounting transaction

• Due care

• Accounting cycle

means that information remains unchanged from its source and has not been accidentally or maliciously modified, altered, or destroyed.

• Information System

• Information Security

• Annual Report

• Information Integrity

is a structured set of processes, people, and equipment for converting data into information.

• Information System

• Information Security

• Annual Report

• Information Integrity