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24 Cards in this Set
- Front
- Back
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Accounting |
The information system that identifies, records, and communicates the economic events of an organization to interested users. |
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Annual Report |
A report prepared by corporate management that presents financial information including financial statements, notes, a management discussion and analysis section, and an independent auditor's report. |
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Assets |
Resources owned by a business |
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Auditor's report |
A report prepared by an independent outside auditor stating the auditor's opinion as to the fairness of the presentation of the financial position and results of operations and their conformance with generally accepted accounting standards. |
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Balance sheet |
A financial statement that reports the assets and claims to those assets at a specific point in time. |
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Certified Public Accountant CPA |
An individual who has met certain criteria and is thus allowed to preform audits of corporations. |
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Common Stock |
The total amount paid in by stockholders for the shares they purchase. |
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Corporation |
A business organized as a separate legal entity having ownership divided into transferable shares of stock. |
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Dividend |
Payments of cash from a corporation to its stockholders. |
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Expenses |
The cost of assets consumed or services used in the process of generating revenue. |
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Income Statement |
A financial statement that presents the revenues and expenses and resulting net income or net loss of a company for a specific period of time. |
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Liability |
The debts and obligations of a business. It represents amount owed to creditors. |
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Management Discussion and Analysis MD&A |
A section of the annual report that presents management's views on the company's ability to pay near-term obligations, it's ability to fund operations and expansion, and it's results of operations. |
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Net Income |
The amount by which revenues exceed expenses. |
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Net Loss |
The amount by which expenses exceed revenues. |
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Notes to the Financial Statements |
Notes that clarify information presented in the financial statements, as well as, expand upon it where additional detail is needed. |
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Partnership |
A business owned by two or more persons associated as partners. |
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Retained Earnings |
The amount of net income retained in the corporation. |
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Retained Earnings Statement |
A financial statement that summarizes the amounts and causes of changes in retained earnings for a specific period of time. |
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Revenue |
The increase in assets that result from the sale of a product or service in the normal course of business. |
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Sarbanes-Oxley Act |
Regulations passed by Congress in 2002 to try to reduce unethical corporate behavior. |
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Sole Proprietorship |
A business owned by one person. |
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Stockholders' Equity |
The owners' claim to assets. |
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Statements of Cash Flow |
A financial statement that provides financial information about the cash receipts and cash payments of a business for a specific period of time. |
