Accounting Vocabulary Review

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Across
  1. 3. A person or company to whom the money is owed.
  2. 5. Includes all of the costs and expenses directly related to the production of goods. Excludes indirect costs such as overhead and sales & marketing.
  3. 6. A document of financial statements that public corporations must provide (annually) to shareholders and potential investors. It describes their operations and financial conditions. It summarizes the year’s activities and tells how the company achieved its goals (or why it did not). It often opens with a letter to shareholders from the CEO and chairperson of the board of directors.
  4. 10. The money left over once operating expenses have been deducted from the total profit.
  5. 12. When something that has value is exchanged for something else that has value.
  6. 15. A 12 month operating period (it does not have to start on January 1st). It is at the time that every retailer starts the year with inventory on hand.
  7. 18. The investment in the business or the financial portion of the financial portion of the business that actually belongs to the owner.
  8. 19. Things that are valued or owed. Some assets are cars, inventory, cash, vehicles, or buildings.
  9. 20. The principle that accurate profit reporting can be done only if all the costs of doing business in a particular period are matched with the revenue generated during that period.
Down
  1. 1. All the money left over after deducting the costs of goods sold from the revenue but before deducting the business expenses that helped generate the revenue.
  2. 2. An additional way bookkeepers record transactions. They are bills for goods and services either bought or sold to the company.
  3. 4. A method of recording all transactions for a business. It is usually written in a very specific format. Examples include cash register receipts for retail businesses to record transactions.
  4. 6. Money that a business owes. (A liability)
  5. 7. Also known as net profit, is the money left over once operating expenses have been deducted from the total profit.
  6. 8. Expenses that a business incurs through its normal business operations. ex. rent, equipment, inventory costs, marketing, payroll, insurance, etc
  7. 9. A person that owes money to a company or another person.
  8. 11. The debts of a business. Businesses acquire debt in two main ways. Accounts payable or by pay ables.
  9. 13. The word used for describing how liquid an asset is. This means that it can easily be exchanged for any other asset or turned into cash.
  10. 14. Money owed to a business or person. (An asset)
  11. 16. The principle that employees with access to cash are responsible for the money they handle and must explain any losses or discrepancies.
  12. 17. The money, or the promise of money, received from the sale of goods or services.