ACCTMIS 2200 Midterm: 4. Unit 1 Review

• School: Ohio State University
• Department: Accounting and Management Info
• Course: ACCTMIS 2200
• Professor: Marc Smith

Document Summary

Accounting - the means by which we measure and describe the economic activities of a business and communicate these results to interested users. Accruals - transactions for which cash has not been received/paid, but the related revenue/expense has been earned/incurred and must be recorded (action before cash) Accrued expenses - expenses incurred but not yet paid in cash or recorded. Accrued revenues - earned but not yet received in cash or recorded. Contributed capital (common stock) - represents investments made by owners into the business through the purchase of the organizations" stock. Current assets - assets expected to either be converted into cash or expire (be used up) within one year. Accounts receivable - represent amounts owed to the company by its customers. Current liabilities - liabilities expected to be paid within one year. Deferrals - transactions for which cash has been received/paid while the related revenue/expense has not been recorded (cash before action)