Financial And Managerial Accounting Chapter 1 Terms

4. Accounting transactions only – From independent observability, show me that piece of paper, for checking ownership

Advantages:
A receipt exists outside the company, so an asset cant be inflated

Disadvantages:
There is room for manipulation

Financial Statements – Financial reports that summarize the financial condition and operations of a business
Expense – A decrease in assets,other than withdraws by the owner, which result from efforts to produce revenue.
liabilities 1 – forrás, passzíva
Net Loss – The difference between total revenue and total expenses when total expenses are greater.
account – is a record of the increases and decreases in and the balance for a specific item such as cash or equipment.
Renaissance art was characterized by: individualism, realism, prosperity, civic pride, and personal pleasure.
Sole trader – 1 owner; unlimited liability; non-continuous existence. Eg Butcher
Aspects of a Statement of Retained Earnings – Beginning Retained Earnings
+Net income
-Dividends
=
Ending Retained Earnings
Renаissаnce аrt was characterized by: individualism, realism, prоsperity, civic pride, and persоnal pleasure.
Accounts – are used to organize or group transactions to facilitate financial statements preparation
Revenue – An increase in owners equity resulting from the opreation of a buisness is called revenue

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