Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/36

Click to flip

36 Cards in this Set

  • Front
  • Back

Accounting

The recording, classifying, summarizing, and interpreting of financial events and transactions to provide management and other interested parties the information they need to make good descisions.

Managerial Accounting

Accounting used to provide information and analyses to managers inside the organization to assist them in decision making.

Certified Management Accountant (CMA)

A professional accountant who has met certain educational and experience requirements, passed a qualifying exam, and has been certified by the Institute of Certified Management Accountants.

Financial Accounting

Accounting information and analyses prepared for people outside of the organization.

Annual Report

A yearly statement of the financial condition, progress, and expectations of an organization.

Private Accountant

An accountant who works for a single firm, government agency, or nonprofit organization.

Public Accountant

An accountant who provides accounting services to individuals or businesses on a fee basis.

Certified Public Accountant (CPA)

AN accountant who passes a series of examinations established by the American Institute of Certified Public Accountants (AICPA).

Auditing

The job of reviewing and evaluating the information used to prepare a company's financial statements.

Independant Audit

An evaluation and unbiased opinion about the accuracy of a company's financial statements.

Certified Internal Auditor (CIA)

An accountant who has a bachelor's degree and two years of experience in internal auditing, and who has passed an exam administered by the Institute of Internal Auditors.

Tax Accountant

An accountant trained in tax law and responsible for preparing tax returns or developing tax strategies.

Government and not-for-profit accounting

Accounting system for organizations whose purpose is not generating a profit, but serving ratepayers, taxpayers, and others according to a duly approved budget.

Accounting Cycle

A six-step procedure that results in the preparation and analysis of the major financial statements.

Bookkeeping

The recording of business transactions.

Journal

The record book or computer program where accounting data are first entered.

Double-Entry Bookkeeping

The practice of writing every business transaction in two places.

Ledger

A specialized accounting book or computer program in which information from accounting journals is accumulated into specific categories and posted so that managers can find all of the information about one account in the same place.

Trial Balance

A summary of all the financial data in the account ledgers that ensures the figures are correct and balanced.

Financial Statement

A summary of all of the transactions that have occurred over a particular period.

Fundamental Accounting Equation

Basis for the balance sheet


Assets=Liabilities+Owners Equity

Balance Sheet

Financial statement that reports a firm's financial condition at a specific time and is composed of three major accounts: assets, liabilities, and owners' equity.

Assets

Economic resources (things of value) owned by a firm.

Liquidity

The ease with which an asset can be converted into cash.

Current Assets

Items that can or will be converted into cash within one year.

Fixed assets

Assets that are relatively permanent, such as buildings, land, and equipment.

Intangible Assets

Long-term assets (patents, trademarks, copyrights) that have no real physical form but do have value.

Liabilities

WHat the business owes to others (Debts)

Accounts Payable

Current liabilities are bills the company owes to others for merchandise or services purchased on credit but not yet paid for.

Notes Payable

Short-term or long-term liabilities that a business promises to repay by a certain date.

Bonds Payable

Long-term liabilities that represent money lent to the firm that must be paid back.

Owners' Equity

The amount of the business that belongs to the owners minus any liabilities owed by any business.

Retained Earnings

The accumulated earnings from a firms profitable operations that were reinvested into the business and not paid out to stockholders in dividends.

Statement of cash flows

Financial statement that reports cash receipts and disbursements related to a firms three major activities: Operations, Investments, and Financing.

Cash Flow

The difference between cash coming in and cash going out of a business.

Ratio Analysis

The assessment of a firm's financial condition using calculations and interpretations of financial ratios developed from the firms financial statements.