Chapter1Keyterms - Chapter 1 Key Terms AC114 Accounting I...

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Chapter 1 Key Terms – AC114 Accounting I account form The form of balance sheet that resembles the basic format of the accounting equation, with assets on the left side and Liabilities and Owner's Equity sections on the right side. account payable The liability created by a purchase on account. account receivable A claim against the customer created by selling merchandise or services on credit. accounting An information system that provides reports to stakeholders about the economic activities and condition of a business. accounting equation Assets = Liabilities + Owner's Equity. assets The resources owned by a business. balance sheet A list of the assets, liabilities, and owner's equity as of a specific date, usually at the close of the last day of a month or a year. business An organization in which basic resources (inputs), such as materials and labor, are assembled and processed to provide goods or services (outputs) to customers. business entity concept A concept of accounting that limits the economic data in the accounting system to data related directly to the activities of the business. business transaction An economic event or condition that directly changes an entity's financial condition or directly affects its results of operations. Certified Public Accountant (CPA) Public accountants who have met a state's education, experience, and examination requirements. corporation
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This note was uploaded on 10/05/2010 for the course ACCOUNTING n/a taught by Professor N/a during the Summer '09 term at Kaplan University.

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Chapter1Keyterms - Chapter 1 Key Terms AC114 Accounting I...

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