process of recording daily business transactions; only one part of the accounting process

maintaining accounting records by hand

maintaining accounting records with the help of computer software

person who has an interest in a company

amount earned is greater than the amount spent

amount earned is less than amount spent; a loss occurs when there is no profit

person or company which lends money to another person or company

form of accounting which produces information for external use through financial statements

produces information mainly for company/management use

accounting method used to record tax transactions

process of using information gathered from financial transactions and records

common set of accounting rules and procedures; needed in accounting to maintain accuracy and consistency of financial reports

actual cost of an item needs to be stated, not its current value

accountants must only record information which can be verified

all information which is relevant to financial statement must be included in the financial statement

expenses must be reported at the same time of the corresponding (matching) revenue

assumption a company intends to continue operations

duty to uphold rules and regulations based on moral values

individuals who own part of a company through stock ownership

taking actions which benefit society as a whole

additional costs beyond normal business costs due to an activity or policy

records financial transactions and prepare financial reports

records and analyzes financial information for internal use by managers

maintains and examines records of government agencies