front 1 Accounting | back 1 The information system that measures business activities, processes the information into reports, and communicates the results to decision makers. |
front 2 Financial Accounting | back 2 The field of accounting that focuses on providing information for external decision makers |
front 3 Managerial Accouting | back 3 The field of accounting that focuses on providing information for internal decision makers |
front 4 Creditor | back 4 Any person or business to whom a business owes money |
front 5 Certified Public Accountants(CPAs) | back 5 Licensed professional accountants who serve the general public |
front 6 Certified Management accountants(CMAs) | back 6 Certified professionals who specialize in accounting and financial management knowledge. They typically work for a single company. |
front 7 Financial Accounting Standards Board(FASB) | back 7 The private organization that oversees the creation and governance of accounting standards in the United States |
front 8 Securities and Exchange Commission(SEC) | back 8 U.S. governmental agency that oversees the U.S. financial markets |
front 9 General Accepted Accounting Principles(GAAP) | back 9 Accounting guidelines, currently formulated by the Financial Accounting standards board; the main U.S. accounting rule book. |
front 10 Economic Entity Assumption | back 10 An organization that stands apart as a separate economic unit |
front 11 Stockholder | back 11 A person who owns stock in a corporation |
front 12 Sole Proprietorship | back 12 A business with a single owner |
front 13 Partnership | back 13 A business with two or more owners and not organized as a corporation |
front 14 Corporation | back 14 a business organized under state law that is a separate legal entity |
front 15 Limited-Liability Company (LLC) | back 15 A company in which each member is only liable for his or her own actions |
front 16 Cost Principle | back 16 A principle that states that acquired assets and services should be recorded at their actual cost. |
front 17 Going concern assumption | back 17 Assumes that the entity will remain in operation for the foreseeable future |
front 18 Monetary Unit assumption | back 18 the assumption that requires the items on the financial statements to be measured in terms of a monetary unit |
front 19 International Financial Reporting Standards(IFRS) | back 19 A set of global accounting guidelines, formulated by the international accounting standards board |
front 20 International Accounting Standards Board(IASB) | back 20 The private organization that oversees the creation and governance of International Financial Reporting Standards |
front 21 Audit | back 21 An examination of a company's financial statements and records |
front 22 Sarbanes-Oxley Act(SOX) | back 22 Requires companies to review internal control and take responsibility for the accuracy and completeness of their financial reports |
front 23 Assets | back 23 Economic resources that are expected to benefit the business in the future. Something the business owns or has control of |
front 24 Liabilities | back 24 Debts that are owed to creditors |
front 25 Equity | back 25 the owner's claim to the assets of the business |
front 26 Contributed Capital | back 26 owners contributions to a corporation |
front 27 Revenues | back 27 amount earned from delivering goods or services to customers |
front 28 expenses | back 28 the cost of selling good or services |
front 29 Dividend | back 29 a distribution of a corporation's earnings to stock holders |
front 30 common stock | back 30 represents the basic ownership of a corporation |
front 31 retained earnings | back 31 capital earned by profitable operations of a corporation that is not distributed to stockholders |
front 32 net income | back 32 the result of operations that occur when total revenues are greater than total expenses |
front 33 net loss | back 33 the result of operations that occur when total expenses are greater than total revenues |
front 34 Transaction | back 34 an event that affects the financial position of the business and can be measured reliably in dollar amounts |
front 35 Accounts payable | back 35 a short-term liability that will be paid in the future |
front 36 accounts receivable | back 36 the right to receive cash in the future from customers for goods sold or for services preformed |
front 37 Financial Statements | back 37 Business documents that are used to communicate information needed to make business decisions |
front 38 income statement | back 38 reports the net income or net loss of the business for a specific period |
front 39 statement of retained earnings | back 39 reports how the company's retained earnings balance changed from the beginning to the end of the period |
front 40 balance sheet | back 40 reports on the assets, liabilities and stockholders' equity of the business as of a specific date |
front 41 statement of cash flows | back 41 Reports on a business' cash receipts and cash payments for a specific period |
front 42 Return on Assets(ROA) | back 42 Measures how profitably a company uses its assets. Net income/average total assets |