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30 Cards in this Set
- Front
- Back
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Accounting |
System for recognizing, organizing, analyzing, and reporting information about financial transactions. |
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Financial Accounting |
Prepares financial statements for use by owners, creditors, suppliers, and other external stakeholders. |
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GAAP |
Generally Accepted Accounting Principles. Set of accounting standards. |
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FASB |
Financial Accounting Standards Board. Established general principles. |
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Balance Sheet |
Financial statement that reports the financial position of a firm by identifying and reporting the value of a firm's assets, liabilities, and owner's equity. |
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Accounting Equation |
Assets = Liabilities + Owner's Equity |
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Assets |
Resources owned by a firm |
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Liabilities |
Claims outsiders have against a firm's assets |
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Owner's Equity |
Claims a firm's owner have against company assets. |
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Income Statement |
Reports revenues, expenses, and net income that resulted from firm's operation. |
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Revenue |
Increases in assets |
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Accrual-Basis Accounting |
Method of accounting that recognizes revenue when it is earned and matches expenses to the revenues they helped produce. |
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Expenses |
Resources used up by a firm |
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Net Income |
Difference between revenue of a firm and expenses it incurs. |
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Statement of Cash Flows |
Financial statement that identifies a firm's sources and users of cash. |
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Horizontal Analysis |
Analysis of financial statements that compares account values reputed on thar statements over two or more years to identify changes and trends. |
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Budgeting |
Management tool that shows explicitly how a firm will acquire and use resources in order to achieve a goal. |
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Operating Budgets |
Communicate an organization's sales and production goals and needed resources. |
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Financial Budgets |
Focus on the firm's financial goals and identifies resources needed to achieve those goals. |
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Matter Budget |
Presentation of an organization's operation and financial Budgets that represent the firm's overall plan of action. |
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Managerial Accounting |
Provides report and analysis to managers to help them make informed business decisions. |
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Cost |
Value of what is given up |
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Out-Of-Pocket Cost |
Involves payment of money or other resources |
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Implicit Cost |
Opportunity cost that arises when a firm users owner-supplied resources. |
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Fixed Costs |
Costs that remain the same when the level of production changes |
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Variable Costs |
Costs that vary directly with level of production |
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Direct Cost |
Closures incurred directly as the result of some specific cost object |
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Indirect Cost |
Result of a firm's general operations, not directly tied to any specific cost object |
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ABC |
Activity-Based Costing. Technique to assign product costs based on links between activities that drive costs and the production of specific products. |
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SEC |
Securities and Exchange Commission |
