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41 Cards in this Set

  • Front
  • Back
What is the information system that identifies, records and communicates the economic events of an organization to interested users
Give the proper word which describes the resources a business owns
Which equation is:
Assets= Liabilities + Owner's Equity
Basic accounting equation
What process reduces the differences between GAAP (generally accepted accounting principles) and the IFRS (International Financial Reporting Standards)
What part of accounting involves only the recording of economic events
What type of business is organized as a separate legal entity under state corporation law, having ownership divided into transferable shares of stock
What accounting principle states that companies should record assets at their cost?
Cost principle
what is the word for withdrawing cash or other assets from an unincorporated business for the personal use of the owner
What assumption requires that the activities of the entity be kept separate and distinct from the activities of its owner and all other economic entities?
Economic entity assumption
Standards of conduct by which one's actions are judged as right or wrong, honest or dishonest, fair or not fair
Name the equation:
Assets = Liabilities + Owner's Capital - Owner's Drawings + Revenues - Expenses
Expanded accounting equation
What is the cost of assets consumed or services used in the process of earning revenue
What accounting principle states that assets and liabilities should be reported at fair value (def: the price received to sell an asset or settle a liability)
Fair value principle
Give the word that represents the following:
Numbers and descriptions match what really existed or happened - it is factual
Faithful Representation
What field of accounting provides economic and financial information for investors, creditors, and other external users?
Financial Accounting
What private organization establishes generally accepted accounting principles (GAAP)
Financial Accounting Standards Board (FASB)
Give name:
Common standards that indicate how to report economic events.
Generally accepted accounting principles (GAAP)
What financial statement presents the revenues and expenses and resulting net income or net loss of a company for a specific period of time
Income Statement
Name the accounting standard-setting body that issues standards adopted by many countries outside the United States
International Accounting Standards Board (IASB)
What are the assets an owner puts into the business?
Investments by owner
What are creditors' claims on total assets?
What field of accounting provides internal reports to help users make decisions about their companies?
Managerial accounting
What assumption states that companies include in the accounting records only transaction data that can be expressed in terms of money?
Monetary unit assumption
When revenues exceed expenses you have what?
Net income
When expenses exceed revenues you have what?
Net loss
what is an owner's claim on total assets?
Owner's equity
What type of financial statement summarizes the changes in owner's equity for a specific period of time
Owner's equity statement
What type of business is owned by two or more persons associated as partners
What is a business owned by one person called?
What word describes financial information that is capable of making a difference in a decision?
What is the gross increase in owner's equity resulting form business activities entered into for the purpose of earning income?
What law passed by Congress in 2002 intended to reduce unethical corporate behavior?
Sarbanes-Oxley Act of 2002 (SOX)
What governmental agency oversees U.S. financial markets and accounting standard-setting bodies?
Securities and Exchange Commission (SEC)
What financial statement summarizes information about the cash inflows (receipts) and cash outflows (payments) for a specific period of time?
Statement of cash flows
What economic events of a business are recorded by accountants?
What is the examination of financial statements by a certified public accountant in order to express an opinion as to the fairness of presentation?
What area of accounting uses accounting, auditing and investigative skills to conduct investigations into theft and fraud?
Forensic accounting
What are of public accounting ranges from development of accounting and computer systems to support services for marketing projects and merger and acquisition activities
Management accounting
What area of accounting within a company involves such activities as cost accounting, budgeting design and support of accounting information systems and tax planning and preparation?
Private accounting
What area of accounting offers expert service to the general public?
Public accounting
What area of public accounting involves tax advice, tax planning, preparing tax returns and represents clients before gov't agencies?