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26 Cards in this Set

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  • Back
the recording, classifying, summarizing and interpreting of financial events and transactions to provide management and others the information they need to make good decisions---help evaluate financial condition
items kept in stock for resale: ex food on grocery shelf, books in book store
Managerial accounting
used to provide information and analyses to managers within the organization to assist them in decision making---CMA= certified management accountant
5 accounting areas
1)managerial and
4)tax accounting, and
5)governmental and not-for-profit accounting
Financial Accounting
accounting info and analyses prepared for people outside the organization
the job of reviewing and evaluationg the records used to prepare a company's financial statements
tax accoutant
trained in tax law and is responsible for preparing tax returns or developing tax strategies
Governament and not-for-profit accounting
involves working for nonprofit generating organizations according to a duly approved budget
the recording and organizing of business transactions for accountants to summarize and classify
the record book or computer program where accounting data are first entered
a specialized accounting book or computer program-organizes and stores info in one spot
financial statement
a summary of all the transactions that have occured over a particular period--indicates a firm's financial health and stability
balance sheet
what the company owns and owes on a certain day
income statement
what a firm sells its products for and what its selling costs are over a specific period
statement of cash flows
shows the difference between cash coming in and cash going out
the fundamental accounting equation
assets= liabilities + owners equity
falance sheet
financial statement that reports a firm's financial condition at a specific time (made up of assets, liabilities, and owners equity)
things of value owned by a firm (tangible and intangible)
how fast an asset can be converted into cash
current assets
items that can or will be converted into cash within one year (inventory)
fixed assets
long term assets that are relatively permanent (land, buildings)
intangible assets
long term assests that have no real physical form but have value (patents, trademark)
what the business owes to others (debts)
current liabilities
debts due in one year or less
long-term liabilities
debts not due for a year or more
owners equity
the amount of the business that belongs to the owners minus any liabilites owed by the business