Accounting Terms: Back to Basics

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Across
  1. 3. includes currency, coins, and amounts on deposit in bank checking or savings accounts
  2. 8. an entry that decreases asset and expense accounts, and increases liability, equity, and revenue accounts
  3. 11. record within an accounting system where increases and decreases in a specific asset, liability, equity, revenue, or expense are entered and stored
  4. 13. charge for using money until repaid at a future date
  5. 15. the action or process of keeping financial accounts
  6. 16. cost of inventory sold to customers during a period
  7. 17. describes the sources and uses of cash for a reporting period
  8. 18. method to assign cost to inventory that assumes items are sold in the order acquired
  9. 19. expense created by allocating the cost of plant and equipment to periods in which they are used; represents the expense of using an asset
  10. 22. amount by which a company's value exceeds the value of its individual assets and liabilities
  11. 23. amount that the signer of a note agrees to pay back when it matures, no including interest
  12. 25. individuals and organizations that own the right to receive payments from a company
  13. 27. long-term assets used to produce or sell products or services; they usually lack physical form and their benefits are uncertain
  14. 28. obligations to make a future payment if, and only if, an uncertain future event occurs
  15. 30. individual or entity that owns the shares of a corporation
  16. 32. method to assign cost to inventory that assumes costs for the most recent items purchased are sold first and charged to cost of goods sold
  17. 33. reports the financial position of a company at a point in time
  18. 35. the owner’s claim on the assets of a business, aka “net assets”
  19. 39. class of ownership in a corporation that has a higher claim on its assets and earnings than common stock
  20. 40. net sales minus cost of goods sold
  21. 41. accounts of customers who do not pay what they have promised to pay
  22. 42. a liability created by buying products or services on credit
  23. 43. estimate of amount to be recovered at the end of an asset's useful life
  24. 44. total cost of an asset less its accumulated depreciation
  25. 45. merchandise a company owns and expects to sell in its normal operations
  26. 48. a records of the debits and credits of transactions and events
  27. 49. process of allocating the cost of an intangible asset to expense over its estimated useful life
  28. 50. accounting system that recognizes revenues when cash is received and records expenses when cash is paid
Down
  1. 1. length of time an asset will be productively used in the operations of a business
  2. 2. occurs when expenses exceed revenues
  3. 3. security that represents ownership in a corporation; holders exercise control by electing a board of directors and voting on corporate policy
  4. 4. an asset created by selling products or services on credit
  5. 5. customers and other individuals and organizations who owe a company
  6. 6. any payment received from investors for stock that exceeds the par value of the stock
  7. 7. obligations of a company that reflect the claims of others against assets
  8. 9. journal entry at the end of an accounting period to bring an asset or liability account to its proper amount and update the related expense or revenue account
  9. 10. obligations due to be paid or settled within the longer of one year of the operating cycle
  10. 12. income statement, balance sheet, statement of changes in owner’s equity, and statement of cash flows
  11. 14. equals a corporation’s accumulated net income (loss) for all prior periods that has not been distributed to shareholders
  12. 15. examining an entity's accounting records, as well as the physical inspection of its assets
  13. 20. a liability expressed by a written promise to make a future payment at a specific time
  14. 21. cash or other assets that are expected to be sold, collected, or used within the longer of one year or the company’s operating cycle
  15. 24. entries recorded at the end of each accounting period to transfer end-of-period balances in revenue, expense, and withdrawals accounts to the owner’s capital account
  16. 26. outflows or the using up of assets in providing products and services to customers
  17. 29. reports the revenues earned less the expenses incurred by a business over a period of time
  18. 31. occurs when revenues exceed expenses
  19. 34. entity created by law and separate from its owners
  20. 36. corporation's reacquired shares
  21. 37. an entry that increases asset and expense accounts, and decreases liability, equity ad revenue accounts
  22. 38. accounting system that recognizes revenues when earned and expenses when incurred
  23. 46. inflows of assets in exchange for products and services provided to customers as part of a company’s operations
  24. 47. resources owned or controlled by a company that provide expected future benefits to the company