MGT101 Short Notes by Study with BRD

account

An accounting record in which the results of transactions are accumulated; shows increases, decreases, and a balance.

account payable

An amount owed to a supplier for good or services purchased on credit; payment is due within a short time period, usually 30 days or less.

account receivable

A current asset representing money due for services performed or merchandise sold on credit.

account receivable turnover

A measure used to determine a company's average collection period for receivables; computed by dividing net sales (or net credit sales) by average accounts receivable.

accounting

A service activity designed to accumulate, measure, and communicate financial information about economic entities for decision-making purposes.

accounting cycle

The procedures for analyzing, recording, classifying, summarizing, and reporting the transactions of a business.

accounting model

The basic accounting assumptions, concepts, principles, and procedures that determine the manner of recording, measuring, and reporting an entity's transactions.

accounting system

The set of manual and computerized procedures and controls that provide for identifying relevant transactions or events; preparing accurate source documents, entering data into the accounting records accurately, processing transactionsaccurately, updating master files properly, and generating accurate documents and reports.

accrual basis

Gross income is recognized when earned.

accrual-basis accounting

A system of accounting in which revenues and expenses are recorded as they are earned and incurred, not necessarily when cash is received or paid.

accrued expenses

Expenses that arise through adjusting entries when accounting for unrecorded expenses.

accrued liabilities

Liabilities that arise through adjusting entries when accounting for unrecorded liabilities.

accumulated depreciation

The total depreciation recorded on an asset since its acquisition; a contra account deducted from the origsecuritiesof an asset on the balance sheet.