Ch 1 - Accounting, The Lang of Bus VOCAB Flashcards Preview

Principles of Accounting > Ch 1 - Accounting, The Lang of Bus VOCAB > Flashcards

Flashcards in Ch 1 - Accounting, The Lang of Bus VOCAB Deck (26):
1

Define accounting. (8)

1. process by which financial information about a business is recorded,
2. classified
3. summarized,
4. interpreted, and
5. communicated to
6. owners,
7. managers and
8. other interested parties

2

Define accounting system. (3)

process designed to
1. accumulate
2. classify
3. summarize financial data

3

Define auditing.

review of financial statements to assess their fairness and adherence to GAAP

4

Define auditor's report.

independent accountant's review of a firm's financial statements

5

Define certified public accountant (CPA)

independent accountant who provides accounting services to public for a fee

6

Define corporation. (3)

1. publicly or privately owned business entity that is separate from its owners and
2. has a legal right to own property and do business in its own name
3. stockholders are not responsible for debts or taxes of business

7

Define creditor.

one to whom money is owed

8

Define discussion memorandum.

explanation of a topic under considerations by Financial Accounting Standards Board

9

Define economic entity.

business or org whose major purpose is to produce a profit for its owners

10

Define entity. (5)

1. anything having its own separate identity
2. individual
3. town
4. university
5. business

11

Define exposure draft.

proposed solution to a problem being considered by the Financial Accounting Standards Board

12

Define financial statements.

periodic reports of a firm's financial position or operating results

13

Define generally accepted accounting principles (GAAP)

accounting standards developed and applied by professional accountants

14

Define governmental accounting.

accounting work preformed for a federal, state or local governmental unit

15

Define international accounting.

study of accounting principles used by different countries.

16

Define management advisory services.

services designed to help clients improve their information systems or their business performance

17

Define managerial accounting.

accounting work carried on by an accountant employed by a single business or industry

18

Define partnership.

business entity owned by two or more people who are legally responsible for the debts and taxes of the business

19

Define public accountants.

members of firms that perform accounting services for other companies

20

Define separate entity assumption.

concept of a keeping a firm's financial records separate from the owner's personal financial records

21

Define social entity.

a nonprofit org

22

Define sole proprietorship.

business entity owned by one person who is legally responsible for debts and taxes of the business

23

Define Statements of Financial Accounting Standards.

accounting principles established by the Financial Accounting Standards Board.

24

Define stock.

certificates that represents ownership of a corp

25

Define stockholders.

owners of a corp, also called shareholders

26

Define tax accounting.

service that involves tax compliance and tax planning