Business and Personal Finance © 2007Chapter 20:
Financial AccountingS&P's Financial FocusAccounting TermsWhether working with a professional accountant, or doing your own books, you will need to understand accounting terms. Make a Chart Use the following information to make a chart of accounting terms: - GAAP Generally accepted accounting principles
- Accounting period Specific block of time in which businesses make financial reports
- Financial reports Documents that summarize the results of your business operations and financial picture
- Fiscal year A business year can begin and end in months other than the calendar year, which begins January 1 and end December 31
- Assets Everything the business owns
- Current assets Cash or other items that can be converted to cash quickly and are used by the business within a year
- Fixed assets Items that will be held for more than one year, such as buildings, trucks, or equipment
- Accounts receivable Amount customers owe your business
- Liabilities Business debts
- Accounts payable Amount your business owes to creditors
- Owner's equity Worth of the business, which is calculated by subtracting the total amount of liabilities from the assets.
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