| A | B |
|---|
| Credit | The entry on the right side of an account |
| Debit | The entry on the left side of an account |
| Assets | Things you own |
| Liabilities | A debt or obligation (money owed) |
| Owner's Equity | The amount of the initial investment plus retained earnings. |
| Income | A monetary gain (usually from the sale of products or services) |
| Expenses | Financial burdens; cost |
| Balance Sheet | An official financial statement that includes the company's assets and liabilities. It determines the value of the company by subtracting liabilities from assets. |
| Income Statement | A financial statement of a company's operation. Shows a company's income, expenses, and income for a period of time. Shows the company's profit or loss for a given period of time. |
| Statement of Cash Flow | Details the movement of cash through an organization over a specified period. |
| Accounting | A language that provides information about the financial position of an organization. |
| Operating Information | Needed on a day-to-day basis in order for the organization to conduct its business. |
| Financial Accounting Information | Used by managers, shareholders, banks, creditors, the government, the public, etc… to make decisions involving the organization and its operations. |
| Managerial Accounting Information | In order for the managers of a company to make the best decisions for a company they need to have specific information prepared. |
| Generally Accepted Accounting Principles (GAAP) | General laws or rules that are used to guide accounting activity |
| Status/Stock | Statements show the financial status of an organization at one specified instant in time. |
| Flow Report | Statements show the flow of financial information over a period of time |
