Vocab Flashcards Preview

Accounting > Vocab > Flashcards

Flashcards in Vocab Deck (58):
0

Accounting

Identifies,measures,records and communicates reliable info about the companies activities. Used to see how business is doing , what it owns, and assess future opportunities

1

Bookkeeping

Occurs before accounting to plan and keep accounting records. Transactions are recorded manually or electronically to create a data bank.

2

Buisness

One or more people selling or providing service for profit.

3

Three main forms or buisness organization

Sole, partnership, corporation

4

Sole proprietorship

A) owned by one person
B) only need a license & registration of name
C) is a separate entity for accounting
D) not separate entity for taxes
E) taxes/loss/income reported with personal income
F)unlimited liability
G) small stores
H) limited life

5

Buisness entity principle

Must keep accounting records separate from personal records

6

Unlimited liability

Owner is personally responsible for debts.
Ex. Creditors can come after your stuff even though they have nothing to do with your business

7

Limited life

Buisness dies if sole proprietor does

8

Partnership

A) two or more persons
B) license & registration of name
C) separate entity for accounting
D) written proof how profit/shares will be distributed
E) not separate for taxes
F) unlimited liability
G) partners have limited life ex if one partner dies partnership ends

9

Limited partnership

General partner personally responsible for for debts of buisness but limited partner is only responsible for the amount he/she put in

10

Limited liability partnership

Partners are only personally liable for acts under their control.
Helps protect partners if one partner is negligent

11

Corporation

A) separate legal entity
B) responsible for its own debts
C) separate person from owners
D) files tax returns
E) divided into shares. Traded or sold without effecting operations of buisness
F)unlimited life
G) limited liability

12

Unlimited life

Shareholders die the buisness will continue to run

13

Limited liability

Shareholders personally not responsible for the debts. Shareholder can only lose the amount of money they invested nothing more

14

Common shares

Corporation has only one class of shares

15

Sole (buisness entity)

Yes

16

Sole (legal entity)

No

17

Sole (limited liability)

No

18

Sole (unlimited life)

No

19

Sole (buisness taxed)

No

20

Sole (one owner allowed)

Yes

21

Partnership (buisness entity)

Yes

22

Partnership (legal entity )

No

23

Partnership ( limited liability)

No

24

Partnership ( unlimited life)

No

25

Partnership (buisness taxes)

No

26

Partnership (one owner)

No

27

Corporation (buisness entity)

Yes

28

Corporation (legal entity)

Yes

29

Corporation (limited liability)

Yes

30

Corporation (buisness taxes)

Yes

31

Corporation (one owner)

Yes

32

External users

Not involved in running of the buisness. People outside who are interested in how buisness are doing

33

Examples of external

Shareholders, lenders, directors, customers, suppliers, regulators, lawyers, brokers, and the press

34

External reporting

Financial accounting

35

Financial accounting

Reports which summarize how a buisness is doing for external users to analyze activities

36

Generally accepted accounting principles (GAAP)

Rules that indicate accounting practices

37

Internal users

Directly involved in managing and operating an organization . Try and run buisness better

38

Internal reporting

Managerial accounting

39

Managerial accounting

Accounting serves internal users to run buisness better

40

Internal operating function

Rely on accounting principles. Managers rely on procedures to ensure that reports are reliable

41

Ethics

Right from wrong. Example holding back info isn't illegal but unethical

42

Social responsibility

Concern for the impact of our actions on the rest of society. Buisness should be involved in charitable giving.

43

Technology

Has changed how Info is shared

44

Audit

Review and test of a company's accounting records.

45

Type of managerial accounting

General accounting
Cost accounting
Budgeting
Internal auditing
Management consulting

46

General accounting

Recording and processing transactions and preparing reports for management team

47

The controller

Chief accounting officer of an organization (most important member)

48

Cost accounting

Track of costs and info about the costs in an organization

49

Budgeting

Process of developing formal plans for the future

50

Internal auditing

Employees by the company to evaluate procedures

51

Management consulting

Done by external auditors

52

External auditors

Provide ways to improve company

53

Tax accountants

Help taxpayers comply with government by preparing their tax returns

54

CGA

Certified general accountant

55

CMA

Certified management accountant

56

CA

Chartered accountant

57

CPA

emerged from belief that Canada needs accounting profession based on the 3 designations. 190 000 strong