Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
27 Cards in this Set
- Front
- Back
|
Big four accounting firms |
Pricewaterhouse Coopers Deloitte Ernst and Young KPMG |
|
|
What was the fifth/ why |
arthur andersen llp/ enron scandal |
|
|
5 functions of accounting |
classified, recorded, summarized, interpreted, communicated |
|
|
3 jobs in the accounting profession |
accountant accounting clerk bookkeeper |
|
|
whats the highest position for an accountant |
CPA |
|
|
3 areas in which an accountant can work |
public accounting managerial accounting governmental accounting |
|
|
Public accounting |
auditing, tax accounting, management advisory |
|
|
auditing |
independently review finances of a person |
|
|
Managerial accounting |
involves working for a single business to - establish accounting policies - provide financial advice to management - manage the accounting system - prepare and interpret financial statements - prepare tax forms and do tax planning - prepare internal reports for management |
|
|
Governmental accounting |
involves keeping financial records and preparing financial reports as part of the staff of federal, state, or local governmental units such as SEC, IRS, FBI, DHS |
|
|
Users of financial information- inside business |
owner, companies, workers, investors, employees, managers |
|
|
Users of financial information- outside business |
customers, investors, government/agency, tax collectors, town/city |
|
|
Suppliers |
assess the firms ability to pay its bills and set a credit limit for the firms |
|
|
Banks |
use financial information to decide whether to make a loan and determine the terms of the loan |
|
|
Securities and Exchange Commission |
the federal agency that oversees the financial information of public corporations |
|
|
Sarbanes-Oxley act |
designed as a regulatory crackdown on corporate fraud and corruption |
|
|
public corporations |
those whose stock is traded on stock exchanges and over the counter markets |
|
|
FASB |
creates and maintains GAAP |
|
|
SEC |
final say over GAAP |
|
|
GAAP |
rules an account has to follow/ accounting standards |
|
|
GAAP stands for |
generally accepted accounting principles |
|
|
the separate entity assumption |
the concept of keeping a firm's financial records separate from the owner's personal financial records |
|
|
typical partnerships |
medical practices, dental practices, law firm, accounting firm, architectural firm |
|
|
Three major legal forms of a business entity |
corporation, sole proprietorship, partnership |
|
|
Advantages and disadvantages of sole proprietorship |
advantages- only one owner so they have all the say and control disadvantages- owner has the full responsibility and it can end depending on death debt etc, |
|
|
Advantages and disadvantages of partnership |
advantages- partners share responsibilities for debts disadvantages- 2 or more owners so they have to share control |
|
|
Advantages and disadvantages of corporation |
advantages- continues indefinitely, stockholders can lose only the amount invested disadvantages- can be thousands of owners so you lose your power |
