A business organized under the laws of the company as a separate legal entity.

A person or entity that has an interest in the information that relates to the ability of the business to pay dividends.

A specialized field of accounting concerned mainly with the recording and reporting of financial data and activities to users to facilitate making decisions.

An economic event or condition that initiates the accounting process of recording it in an accounting system.

The process of collecting, measuring and recording an enterprise’s transactions.

An assumption is that a sale is deemed to have taken place at the time at which the goods are delivered.

An item of value held by an entity that is going to generate income in the future.

Amounts owing by the business to its creditors.

An amount owed by the customer.  

The amounts incurred in the process of earning revenue.

The amount a business earns by selling goods or services to its customers.

Assumes that every transaction affects two accounts in a set of financial statements.

A concept of accounting in which expenses are matched with the revenue generated during a period by those expenses.

Assets = Liabilities + Owner’s Equity

Income Statement, Statement of Financial Position, and Statement of Cash Flows.

The statement that outlines the income for the period and the expenses incurred in the period.

The statement that provides information on the financial position of the entity.

Outline the principal of understandability, relevance, reliability and comparability.

The information that is said to be material and has the ability to influence the decisions of users.