Coby Ng_Vocab Assignment_Personal Words

[Coby Ng]

PERSONAL WORDS
	VOCABULARY	DEFINITION	SOURCE
1.	“Business:”	Business involves the manufacture and/or sale of goods or services in order earn a profit.	Textbook: P.4
2.	“Debit:”	To record an amount on the left-hand side of an account. Contrast Credit.	Textbook: P.772
3.	“The Going Concern Concept:”	The continuing concern concept assumes that a business will continue to operate, unless it is known that it will not. The dollar values associated with a business that is alive and well are straightforward. For example, a supply of envelopes with the company's name printed on them would be valued at their cost price. This would not be the case if the company were going out of business. In that case, the envelopes would be difficult to sell because the company's name is on them. When a company is going out of business, the values of the assets usually suffer because they have to be sold under unfavorable circumstances. The values of such assets often cannot be determined until they are actually sold.	Textbook: P.755
4.	“Partnership:”	A form of business in which more than one person shares in the ownership and operation of a business.	Textbook: P.778
5.	“The Principle of Conservatism:”	The principle of conservatism provides that accounting for a business should be fair and reasonable. Accountants are required in their work to make evaluations and estimates, to deliver opinions, and to select procedures. They should do this in such a way that assets or profits are neither overstated nor understated.	Textbook: P.756