会计学原理英文名词解释

《会计学原理》名词解释

1.Accounting: is an information and measurement system that

identifies records and communicates relevant reliable and comparable information about an organization’s business activities.(P2)

2.Managerial accounting: is the area of accounting that serves

the decision-marking needs of internal users.(P4)

3.Events: refer to happenings that affect an entity’s

accounting equation and can be reliably measured.(P11) 4.External user: of accounting information are not directly

involved in running the organization.(P3)

5.Internal user: of accounting information are those directly

efficiency and effectiveness of an organization.(P4)

6.Ethics: are beliefs that distinguish right from wrong. They

are accepted standards of good and bad behavior.(P5)

7.Cost principle: means that accounting information is based

on actual cost.(P7)

8.Revenue recognition principle: provides guidance on when a

company must recognize revenue.(P7)

9.Matching principle: prescribes that a company must records

its expenses incurred to generate the revenue reported.(P7) 10.Going-concerning assumption: means that accounting

information reflects a presumption that the business will continue operating instead of being closed or sold.(P7) 11.Audit: through review of an organization’s accounting

records and accounting reports and return make by the analysis.

income:amount a business earns after paying all

expenses and costs associated with its sales and revenues.(P15)

13.Income statement: describes a company’s revenues and

expenses along with the resulting net income or loss over

a period time due to earnings activities.(P14)

14.Statement of owner’s equity: explains changes in equity

from net income (or loss) and from any owner investments and withdrawals over a period of time.(P14)

15.Balance sheet: describ es a company’s financial

position (types and amounts of assets liabilities and equity) at a point in time.(P15)

16.Statement of cash flows: identifies cash inflows

(receipts) and cash outflows (payments) over a period of time.(P15)

17.Owner’s withdrawals account: the account used to record

the transfers of assets from a business to its owner. (P31)

18.Liabilities: is what a company owes its no owners

(creditors) in future payments, products, or services.(P10)

19.Accounting equation: Assets=Liabilities + Equity.(P10)

20.Accrued expense: refer to costs that are incurred in a

period but are both unpaid and unrecorded.(P66)

21.Operating cycle: is the time span from when cash is used

to acquire goods and services until cash is received from the sale of goods and services. (P96)

22.Shareholders (investors): are the owners of a

corporation. (P3)

23.Current radio: a ratio used to help evaluate a company’s

ability to pay its debts in the near future.

24.Merchandise inventory: refers to products that a company

owns and intends to sell.(P113)

25.Cash discount: reduction in a receivable or payable if

it is paid within the discount period. sellers can grant a cash discount to discourage buyers to pay earlier(P137) 26.Gross profit: also called Gross margin, which equals net

sales cost of goods sold.(P137)

27.Credit period: the amount of time allowed before full

payment is due.(P137)

28.Acid-test ratio: a ratio used to assets a company’s