Term
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Definition
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Term
| Owners, Banks, Investors, Suppliers, and Customers |
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Definition
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| What do users make decisions based on? |
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Definition
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Definition
| Enjoyed immediately with no future value |
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Definition
| Little immediate gratification, generates returns for a later date |
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Term
| What are financial reports? |
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Definition
| Balance Sheets, Income statements, statement of shareholders equity, statement of cash flows |
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Definition
| Part of the financial statement. They provide explanations. |
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Definition
| Prevents fraud from happening |
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Definition
| Ability to make debt payments when due |
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Definition
| Ability to generate profit and increase assets |
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Term
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Definition
Analysis of financial ratios such as the current ratio
Current Ration = Current assets / current liabilities |
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Definition
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Term
| Board of directors (elected by stockholders) does? |
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Definition
| Hire corporate officers, sets company policy, and selects audit committee |
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Term
| Equity investors receive? |
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Definition
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Term
| Credit (including bond investors) receive? |
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Definition
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Term
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Definition
| Mechanisms encouraging management to act in the best unrest of the shareholders |
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Definition
| companies, subsidiaries and business segments, which may provide their own financials |
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Term
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Definition
| Prepared when subsidiaries are combined with partners financials |
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Term
| Why are Industries important? |
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Definition
| To understand when analyzing financial statements |
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Term
| Equity investors (External) |
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Definition
| Purchase shares of stock , which represent ownership in the company. The financials are used bu investors to analyze managements decisions |
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Term
| Debt investors (External) |
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Definition
| Provide capital though loans. The financials are used by creditors to assess likelihood of default |
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Term
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Definition
| Uses other companies' financials to assess the competition |
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Term
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Definition
Part of debt contracts between the company and creditors
An agreement |
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Term
| Sarabanes - Oxley Act of 2002 |
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Definition
| Attempt to bolster corporate governance and restore confidence in the US financial reporting system |
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Term
| The Securities and Exchange Commission (SEC) |
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Definition
| Governs financial reporting for publicly reader companies |
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Term
| The Financial Accounting Standards Board (FASB) |
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Definition
| Responsible for the promulgation of GAAP (generally accepted accounting principles) for financial statements |
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Term
| The International Accounting Standards Board (IASB) |
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Definition
| Establishes International Financial Reporting Standards (IFRS) which are an internationally accepted set of standards also used bu some companies in the US |
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