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17 Cards in this Set

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Is a system that collects and processes financial information about an organization and reports that information to the decision makers.
Financial Accounting Reports
External Decision Makers = Creditors(GOVT), Investors, Suppliers, and Customers
Managerial Accounting Reports
Internal Decision makers = Manager, Employees
Four Basic Financial Statements
Balance Sheet
Income Statement
Statement of Retained earnings
Statement of cash flows
Balance Sheet
Statement of financial position; reports the amount of assets, liabilities, and stockholders' equity of accouting entity at a point in time.

Assets = liabilities + Stockholder equity
Income statement
Statement of earnings, Statement of operations; Reports the accountant's primary measure of economic performance during the accouting period.
Statement of Retained Earnings
Reports the way that net income and the distribution of dividends affected the financial position of the company during the accouting period.

Beginning RE + Net Income - Dividends = Ending RE
Statement of Cash flows
Reports inflows and outflows of cash during the accounting period in the categories of operating, investing, and financing.

+/- Cash Flows from operating activities
+/- Cash Flows from investing activities
+/- Cash Flows from financing activities
Accouting Activity
Is the organization for which financial data are to be collected.
Accounting Period
Is the time period covered by the financial statements.
Provide supplemental information about the financial condition of a company, without which the financial statements cannot be fully understood.
Generally Accepted Accouting Principles are the measurement rules used to develop the information in financial statements.
Securities And Exchange Commission is the U.S. Govt. agency that determines the financial stamens that public companies must provide to stockholders and the measurement rules that they must use in producing those statements.
Financial Accounting Standards Board is the private sector body given the primary responsibility to work out the detailed rules that become generally accepted accouting principles.
Public Company Accouting Oversight Board is the private sector body given the primary responsibility to issue detailed auditing standards.
is an examination of the financial reports to ensure that they represent that they claim and conform with GAAP
Price/Earnings Ratio
Measures how many times currents years earnings investors are willing to pay more for a companies stock.