accounting

What is a Liability? In accounting, a liability is debt owed to company or individual. Liabilities are a claim on a company’s assets by the creditors. Liabilities require a payment of assets, such as cash, or a performance of a service. A liability occurs from past transaction that requires a future economic payment. Many liability

What is Revenue? Revenue is income from selling a product or service. A company earns revenue when it receives an asset for selling to a customer. The asset could be cash, accounts receivable, or other assets. Revenues are also called sales. Revenue goes on the company’s income statement. Total revenue is called the top line

Equity is owners’ investment in a company. Stockholders’ equity equals assets minus liabilities and it appears on the balance sheet. What is Equity? Equity appears on a company’s balance sheet. As equity increases, the value of the owners’ investment increases. There are several alternate names for equity: stockholders’ equity shareholders’ equity owners’ equity owners’ capital

Chapter x: name This is Intermediate Accounting Chapter x. For more Intermediate Accounting topics, see Intermediate Accounting Study Guide. This is a review of the accounting system from accounting principles. The basic elements are used to record transactions and prepare financial statements. Accounting Information System The accounting information system records transactions and then summarizes the financial

The conceptual framework shows the basic objectives of financial reporting. It also describes the financial reporting elements and concepts. The conceptual framework of generally accepted accounting principles is set by the Financial Accounting Standards Board (FASB). This is Intermediate Accounting Chapter 2. For more Intermediate Accounting topics, see Intermediate Accounting Study Guide. Accounting Conceptual Framework The