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13 Cards in this Set

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What is accounting?
an information system that measures business activities, processes data into reports, and communicates results to people.
Fianacial Statement
Business documents that report financial information about a business entity to decision makers.
Who uses Accounting Information? (4 answers)
Individuals
Investors and Creditors
Taxing Authorities
Non Profit Organizations
Financial Accoutning
provides information to people outside of the firm
Management accounting
generates inside information for the internal decision makers of a business
Proprietorship
A business with a single owner
Partnership
An association of two or more persons who co-own a business for profit
Corporation
A business owned by stockholders. A legal entity, "artificial person" in the eyes of the law.
Stockholders
A person that owns stock in a corporation
Stock
Shares in which owners equity of a corporation is divided.
Board of Directors
group elected by the stockholders to set policies for a corporation and to appoint officers.
Entity
organization or a section of an organization that stands apart from other organizations and individuals as a seperate economic unit.
Reliability Principle aka Objectivity principle
ensures that accounting records and statements are based on the most reliable data available.