571 Mid Chap 3 & 4 Vocab

The resources owned by an organization in dollar terms

Guidelines that guide the preparation and presentation of financial statements

Economic events are recognized when the financial transaction occurs

The cash received to date and the unpaid obligations of payers for the services provided

Focuses on the economic event that creates the transaction, rather than the transaction itself

Summarizes a business's revenues, expenses and profitability according to GAAP

Snapshot of the financial position of a business at a given point in time

Ownership claim against total assets (or book value) of the ownership position of a business

Fixed claims by employees, suppliers, tax authorities, and lenders against a business's assets

Item on the statement of cash flows which shows the net increase or decrease in cash