Term
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Definition
| identifies cash inflows(receipts) and cash outflows(payments) over a period of time. |
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Term
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Definition
| describes a company's financial position(assets, equity, liabilities) at a point in time |
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Term
| Statement of retained earnings |
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Definition
| explains changes in retained earnings from net income or net loss and from any dividends over a period of time. |
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Term
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Definition
| describes a company's revenues and expenses along with the resulting net income or loss over a period of time due to earnings activities. |
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Term
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Definition
| Happenings that affect the accounting equation and are reliably measured. |
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Term
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Definition
| exchanges within an entity, which may or may not affect the accounting equation. |
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Term
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Definition
| exchanges of value between two entities. |
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Term
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Definition
| When revenue exceeds expenses. It increases equity. |
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Term
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Definition
| decrease retained earnings and are the cost of assets or services used to earn revenues. |
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Term
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Definition
| The distribution of assets to stockholders. |
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Term
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Definition
| income that has not been distributed to its stockholders. |
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Term
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Definition
| the amount that stockholders invest in the company. |
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Term
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Definition
| The owners claim on assets |
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Term
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Definition
| Creditors' claims on assets |
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Term
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Definition
| resources a company owns or controls |
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Term
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Definition
| An act created to help curb financial abuses at companies that issue their stock to the public. It regulates analust conflicts, imposes corporate government requirements, enhances accounting and control disclosures, impacts insider transactions and executive loans, establishes new types of criminal conduct, and expands penalties for violations of federal securities laws. |
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Term
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Definition
| Only information with benefits of disclosure greater than the costs of providing the information need to be disclosed. |
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Term
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Definition
| Only information that would influence the decisions of a reasonable person need to be disclosed. |
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Term
| Common Stock/ Capital Stock |
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Definition
| When a corporation only issues one class of stocks. |
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Term
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Definition
| Units to gauge the division of ownership of a corporation among its multiple owners. |
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Term
| Shareholders/ stockholders |
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Definition
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Term
| Corporation(C corporation) |
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Definition
| a business legally separate from its owner or owners, meaning it is responsible for its own acts and its own debts |
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Term
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Definition
| a business owned by two or more people, called partners, which are jointly liable for tax and other obligations. |
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Term
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Definition
| a business owned by one person in which that person and the company are viewed as one entity for tax and liability purposes. |
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Term
| Business Entity Assumption |
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Definition
| A business owned by one person in which that person and the company are viewed as one entity for tax and liability purposes. |
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Term
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Definition
| Presumes that the life of a company can be divided into time periods, such as months and years, and that useful reports can be prepared for those periods. |
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Term
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Definition
| One can express transactions and events in monetary units |
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Term
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Definition
| accounting information reflects a presumption that the business will continue operating instead of being closed or sold. |
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Term
| Full disclosure principle |
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Definition
| A company must report the details behind financial statements that would impact users' decisions |
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Term
| Expense Recognition(Matching) Principle |
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Definition
| a company must record the expenses it incurred to generate the revenue reported. |
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Term
| Revenue Recognition Principle |
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Definition
| sets standard to when a company must record revenue. |
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Term
| The Measurement(cost) Principle |
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Definition
| accounting information is based on actual cost |
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Term
| International Financial Reporting Standards(IFRS) |
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Definition
| International standards that identify preferred accounting practices |
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Term
| Generally accepted accounting principles(GAAP) |
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Definition
| Principles used to govern financial accounting practices |
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Term
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Definition
| beliefs that distinguish right from wrong. Accepted standards of good and bad behavior. |
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Term
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Definition
| users of accounting information who are directly involved in managing and operating an organization. |
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Term
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Definition
| the area of accounting that serves the decision making needs of internal users. |
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Term
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Definition
| the area of accounting aimed at serving external users by providing them with general-purpose financial statements. |
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Term
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Definition
| users of accounting who are not directly involved in running the organization. |
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Term
| Record-keeping/ Bookkeeping |
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Definition
| the recording of transactions and events, either manually or electronically. |
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Term
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Definition
| an information and measurement system that identifies, records, and communicates relevant, reliable, and comparable information about an organization. |
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Term
| The Securities and Exchange Commission |
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Definition
| Body with legal rights to set Generally Accepted Accounting Principles(GAAP) |
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Term
| International Financial Reporting Standards(IFRS) |
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Definition
| International standards that identify preferred accounting practices |
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Term
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Definition
| An examination of an organization's accounting system and records that adds credibility to financial statements. |
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Term
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Definition
| The acquiring and disposing of assets that an organization uses in its business. |
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Term
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Definition
| Provide the monies needed to pay for resources such as land and buildings. |
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Term
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Definition
| an event that affects the financial position of a particular activity. |
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