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Flashcards in Chapter 1 Deck (42):
1

The information system that measures business activities, processes the information into reports, and communicates the results to decision makers

Accounting

2

The field of accounting that provides information for external decision makers

Financial Accounting

3

The field of accounting that provides information for internal decision makers

Managerial Accounting

4

Any person or business to whom a business owes money

Creditor

5

Licensed professional accountants who serve the general public

Certifies Public Accountants (CPA)

6

Certified professionals that specialize in accounting and financial management knowledge

Certified Management Accountants (CMA)

7

Private organization that oversees the creation and governance of accounting standards in the United States

Financial Accounting Standards Board (FASB)

8

U.S. governmental agency that oversees the U.S. financial markets

Securities and Exchange Commission (SEC)

9

Accounting guidelines as per FASB; the main U.S. accounting rulebook

Generally Accepted Accounting Principles (GAAP)

10

An organization that stands apart as a separate economic unit

Economic Entity Assumption

11

A person who owns stock in a corporation

Stockholder

12

A business with a single owner

Sole Proprietorship

13

A business with two or more owners and not organized as a corporation

Partnership

14

A business organized under state law that is a separate legal enitity

Corporation

15

A company in which each member is only for their own actions

Limited-Liability Company (LLC)

16

Acquired assets and services should be recorded at their actual cost

Cost Principle

17

Assumes that the entity will remain in operation for the foreseeable future

Going Concern Assumption

18

Assumption that requires the items on financial statements be measured in terms of a monetary unit

Monetary Unit Assumption

19

Global accounting guidelines, provided by the IASB

International Financial Reporting Standards (IFRS)

20

Private organization that oversees the creation and governance of IFRS

International Accounting Standards Board (IASB)

21

AN examination of a company's financial statements and records

Audit

22

Requires companies to review internal control and take responsibility for the accuracy and completeness of their financial reports

Sarbanes-Oxley Act (SOX)

23

Assets = Liabilities + Equity

Accounting Equation

24

Economic resources that are expected to benefit the business in the future, something the business owns or has control of

Assets

25

Debts that are owed to creditors

Liabilities

26

The owners' claim to the assets of the business

Equity

27

Owner contribution to a corporation

Contribute Capital

28

Amounts earned from delivering goods or services to customers

Revenues

29

Cost of selling goods or

Expenses

30

Distribution of a corporation's earnings to stockholders

Dividend

31

Represents the basic ownership of a compnay

Common Stock

32

Capital earned by profitable operations of a corporation that is not distributed to stockholders

Retained Earnings

33

Result when total revenue is greater than total expenses

Net Income

34

Result when total revenue is less than total expenses

Net Loss

35

An event that affects the financial position of the business and can be measured in dollar amounts

Transaction

36

A short term liability that will be paid in the future

Accounts Payable

37

The right to receive cash in the future from customers for goods sold or services performed

Accounts Receivable

38

Business documents that are used to communicate information needed to make business decisions

Financial Statements

39

Reports the net income/loss of a business for a specific period

Income Statement

40

Reports the company's retained earnings balance change from the beginning to the end of a period

Statement of Retained Earnings

41

Reports on the assets, liabilities, and equity of the business as of a specific date

Balance Sheet

42

Reports on a business' cash receipts and cash payments for a specific period

Statement of Cash Flows