Accounting unit-1
Slides in this set (3)
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- Terms
- Creditor: A person or business that has extended creditor or loaded money to another credit or loaded money to another individual or business .
- Financial position: The financial status of a person or company represented by the assets, liabilities, and net worth or personal equity.
- Personal net worth. The difference between the cost6 of items owned and debits owned; also referred to as personal equity.
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- Assets: Items of values owned by a person or business.
- Liabilities: Something you owe to someone or a business .
- Personal equity: Is the person's net worth
- balance sheet equation: The basic accounting equation: A= L +OE
- Balance entity principal: Each business be considered a separate entity.
- Balance Sheet: A formal financial statement that lists assets, liabilities, and owners equity at "Statement of financial position.
- Owner's equity: The owners claim against the assets of the company
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- Equity: Claims against assets
- Liquidity order: The order in which assets can be converted to cash
- Cost principal: Assets must be shown on the balance sheet using the of their acquisition
- booking preparing and recording information in accounting