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Flashcards in Chapter One Power Point Deck (33)
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1

Information and measurement system that identifies, records, and communicates information about an organization's business activities

Accounting

2

Type of Accounting that includes:
Lenders
Shareholders
Governments
Consumer Groups
Customers

External
(Financial Accounting)

3

Type of Accounting that includes:
Mangers
Officers/Directors
Sales Staff
Budget Officers
Internal Auditors
Controllers

Internal
(Managerial Accounting)

4

Assets in the equation includes...

What you own
-Cash
-Inventory
-Equipment
-Buildings
-Receivables
-Prepaids
-Intangibles

5

Liabilities in the equation includes...

What you owe
-Payables
-Accrued Costs
-Loans
-Taxes
-Unearned Revenue

6

Equity in the equation includes...

Owners' Claim
-Owners' Contributions
-Retained Earnings

7

What makes up EQUITY

Owners' Contributions + Retained Earnings

8

Owners' Contributions

Stock

9

Retained Earnings

Revenues - Expenses - Dividends

10

Accounting Reports

TRIAGLE
Income Statements ->Statement of retained earnings -> Balance Sheet -> back to income statements

11

GAAP

Generally Accepted Accounting Principles

12

Sets specific principles

Financial Accounting Standards Board (Principle)

13

Reporting requirements

Securities Exchange Commission (Principle)

14

Harmonizing GAAP among different countries

International Accounting Standards Board (Principle)

15

Transaction Event

-Affects the accounting equation
-can be measured

16

After each transaction, the accounting equation must_____

Remain equal

17

Independent and unbiased

Objectivity (Principle)

18

-Accounting information is based on actual cost
-measured in cash

Cost (Principle)

19

-Assumption that an entity will continue operating
-If co. has this, they are predicted to stay afloat for the next 12 months

Going-concern (Principle)

20

Report all relevant business activity information

Full Disclosure

21

Materiality

Focus on items that will have a meaningful impact on a co.'s financing statements

22

Business Entity

-Sole Proprietorship
-Partnership
-Corporation

23

Has Legal Entity

Corporation/ LLC

24

Has Limited Liability

Corporation/ LLC

25

Has Unlimited Life

Corporation/ LLC

26

Has Business Tax

Corporation/LLC

27

One owner allowed

(Sole) Proprietorship and Corporation

28

Monetary Unit

-Everything can be expressed in monetary units
-Unit used usually depends on where the co. operates

29

Monies received from an investment

Return

30

Uncertainty about the return that can be earned

Risk