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25 Cards in this Set
- Front
- Back
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Stockholders' equity |
The owners' claim to assets. |
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Statement of cash flows |
A financial statement that provides financial information about the cash receipts and cash payments of a business for a specific period of time. |
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Sole proprietorship |
A business owned by one person. |
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Sarbanes-Oxley Act (SOX) |
Regulations passed by Congress to reduce the unethical corporate behavior. |
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Revenue |
The increase in assets or decrease in liabilities resulting from the sale of goods or the performance of services in the normal course of business. |
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Retained earnings statement |
A financial statement that summarizes the amounts and causes of changes in retained earnings for a specific time period. |
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Retained earnings |
The amount of net income retained in the corporation. |
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Partnership |
A business owned by two or more persons associated as partners. |
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Notes to the financial statements |
Notes clarify information presented in the financial statements and provide additional detail. |
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Net loss |
The amount by which expenses exceeds revenues. |
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Net income |
The amount by which revenues exceeds expenses. |
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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, its ability to fund operations and expansion, and its results of operations. |
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Liabilities |
Amounts owed to creditors in the form of debts and other obligations. |
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Income statement |
A financial statement that reports a company's revenues and expenses and resulting net income or net loss for a specific period of time. |
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Expenses |
The cost of assets consumed or services used in the process of generating revenues. |
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Dividends |
Payments of cash from a corporation to its stockholders. |
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Corporation |
A business organized as a separate legal entity owned by stockholders. |
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Common stock |
A term used to describe the total amount paid in by stockholders for the shares they purchase. |
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Certified public accountant (CPA) |
An individual who has met certain criteria and is thus allowed to perform audits of corporations. |
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Basic accounting equation |
Assets = Liabilities + Stockholders Equity |
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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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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 principles. |
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Assets |
Resources owned by a business. |
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Annual report |
A report prepared by corporate management that presents financial information including financial statements, a management discussion, and analysis section, notes, and an independent auditor's report. |
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Accounting |
The information system that identifies, records, and communicates the economic events of an organization to interested users. |
