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28 Cards in this Set
- Front
- Back
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accounting
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The process of identifying, recording, and summarizing economic information and reporting it to decision makers.
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financial accounting
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The field of accounting that serves external decision makers, such as stockholders, suppliers, banks, and government agencies.
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management accounting
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The field of accounting that serves internal decision makers, such as top executives, department heads, college deans, hospital administrators, and people at other management levels within an organization.
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annual report
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A document prepared by management and distributed to current and potential investors to inform them about the company's past performance and future prospects.
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Form 10K
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A document that US companies file annually with the Securities and Exchange Commission. It contains the companies' financial statements.
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balance sheet (statement of financial position)
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A financial statement that shows the financial status of a particular business entity at a particular instant in time
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assets
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Economic resources that a company expects to help generate future cash inflows or help reduce future cash outflows.
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liabilities
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economic obligations of the organization to outsiders, or claims against its assets by outsiders
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entity
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an organization or a section of an organization that stands apart from other organizations and individuals as a separate economic unity
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sole proprietorship
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a business with a single owner
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partnership
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a form of organization that joins two or more individuals together as co-owners
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corporation
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a business organization that is created by individual state laws
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limited liability
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a feature of the corporate form of organization whereby corporate creditors ordinarily hav eclaims against the corporate assets only, not against the personal assets of the owners.
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publicly owned
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a corporation that sells shares in its ownership to the public.
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privately owned
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a corporation owned by a family, a small group of shareholders, or a single individual, in which shares or ownership are not publicly sold.
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paid-in capital (contributed capital)
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the total capital investment in a corporation by its owners both at and subsequent to the inception of business
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auditor
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a person who examines the information used by managers to prepare the financial statements and attests to the credibility of those statements
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public accountants
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accountants who offer services to the general public on a fee basis, including auditing, tax work, and management consulting
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certified public accountant (CPA)
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in the united states, a person earns this designation by meeting standards of both knowledge and integrity set by a state board of accountancy. Only CPAs can issue official opinions on financial statements in the united states.
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audit
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an examination of a company's transactions and the resulting financial statements
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auditor's opinion
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a report describing the scope and results of an audit
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private accountants
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accountants who work for businesses government agencies and other nonprofit organizations
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generally accepted accounting principals (GAAP)
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the term that applies to all the broad concepts and detailed practives to be followed in preparing and distributing financial statements. It includes all the conventions, rules, and procedures that together comprise accepted accounting practice.
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financial accounting standards board (FASB)
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The private sector body that is responsible for establishing GAAP in the united states
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Securities and Exchange Commission (SEC)
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The government agencies charged by UW Congress with the responsibility for authorizing the GAAP for companies whose stock is held by the general public.
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International Accounting Standards Board (IASB)
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An international body established to develop, in the public interest, a single set of high-quality, understandable, and enforceable global accounting standards
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American Institute of Certified Public Accountants (AICPA)
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The principal professional association in the private sector that regulates the quality of the public accounting profession.
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Sarbanes-Oxley Act
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A law passed by the US Congress in 2002 that gave the government a larger role in regulating the audit profession.
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