Accounting

Sole proprietorship - a business owned by one person; most common form of business organization .

Partnership - voluntary association of two or more persons for the purpose of conducting a business.

Corporation - legal entity created under laws of a state or federal government

Accounting - process of measuring economic activity of an entity in monetary terms and communicating the results to users

GAAP - set of standards and procedures that guide the preparation of financial statements.

FASB - private, not-for-profit organization whose task is to develop generally accepted accounting principles in the united states.

Balance sheet - financial statement showing a business’s assets, liabilities, and stock holders equity as of a specific date.

Asset - economic resources of a business that can be expressed in monetary terms.

Liabilities - obligations or debts that business must pay in money or services at some point in the future as a consequence of past transactions or events.

Stock holder’s equity - the residual interest of a company’s stockholders in the assets of a business; equal to the difference between the company’s assets and liabilities.

Expenses - decreases in stockholder’s equity incurred by a firm during the process of generating it’s sales revenues.

Statement of retained earnings - financial statement that’s presents information regarding the events causing a change in retained earnings during a period, including net income and dividends.

Statement of cash flow - financial statement showing business’s cash inflows and outflows for a specific time period classified into operating, investing, and financing activities.

Current assets- cash and cash equivalents, account receivable, inventory, other current assets

Long-term assets- property, plant and equipment intangible assets other long-term assets

Current liabilities- accounts payable, accrued expense payable, short-term notes payable, other current liabilities.

Ratio analysis- process of...