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40 Cards in this Set
- Front
- Back
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Accounting |
Information System that identifies, records, and communicates economic events in an organization to interested users |
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Economic Events |
Activities relating to the production and distribution of goods and services in a company |
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Internal user |
A member within an organization, usually of managerial position |
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External user |
those outside of the organization who are still interested in company information Ex. Investors, creditors, tax agencies |
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Financial Accounting |
Information that external users rely on |
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Management Accounting |
Information that internal users rely on |
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Public Accounting |
Providing accounting services to the public Ex. Auditing, consulting |
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Private Accounting |
Accounting that a member within the organization is responsible for Ex. internal auditing, cost accounting |
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Not-for-profit accounting |
Providing accounting services to non-profit organizations |
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CA |
Chartered accountant |
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CGA |
certified general accountant |
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CMA |
Certified Management Accountant |
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CPA |
Chartered Professional Accountant |
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CICA |
Canadian Institute of Chartered Accountants |
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Ethics |
Standard of conduct, by which an action is considered right or wrong, honest or dishonest, and fair or unfair |
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GAAP |
Generally Accepted Accounting Principles - Set of Standards that are universally accepted and recommend how to report economic events |
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IFRS |
International Financial Reporting Standards - Universal set of standards on a universal level |
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Cost principle |
States that the cost of an asset should be recorded at historically original cost, not fair market value |
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Assumptions |
Used to develop principles and GAAP; Help with the accounting process |
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Going Concern Assumption |
Must perform accounting with the assumption that the business will continue to operate in the foreseeable future |
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Monetary Unit Assumption |
Must only perform accounting on things that can be expressed in terms of money, assuming that currency stays constant over time |
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Economic Entity Assumption |
The activities of an entity must be kept separate from its owner and other economic entities |
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Economic Entity |
organization/unit in society |
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Proprietorship |
Sole ownership |
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Partnership |
Dual ownership |
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Corporation |
Ownership spread among shareholders, seperate entity, limited liability |
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Transaction |
Economic event that causes a change in the company's financial position, equality of accounting equation must be preserved |
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External transaction |
Transactions between the company and other organizations |
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Internal transaction |
Transactions that occur strictly within the company |
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Income Statement |
Measures the revenue, expense, and net income/loss of the company over a period of time |
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Statement of Owner's Equity |
Summarizes the changes in Owner's equity over a certain period of time |
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Balance Sheet |
Reports the assets, liabilities, and owner's equity, as well as the overall financial position of the company at a specific date |
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Cash Flow Statement |
Quantifies the movement of cash within a company (inflow/outflow) |
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General Journal |
Book of original entry that shows the debit/credit effects on specific accounts for each transaction. Entering transactions is known as journalizing |
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Posting |
Process of transfering journal entries to a ledger |
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Chart of accounts |
lists the accounts in a ledger by their reference number |
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General Ledger |
Entire group of accounts including assets, liabilities, and owner's equity. Arranged in the order by which the accounts are presented in the financial statements |
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Trial Balance |
a list of accounts and their balance at a specific point in time. Purpose is to show that the total debit balance = credit balance |
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Interim Period |
Accounting time period of less than 1 year |
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Fiscal Year |
Accounting period of 1 year |
