Term
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Definition
| The information system that measures business activities, processes the information into reports, and communicates the results to decision makers. |
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Term
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Definition
| The field of accounting that focuses on providing information for external decision makers. |
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Term
| Certified Management Accountants (CMAs) |
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Definition
| Certified professionals who specialize in accounting and financial management knowledge. They typically work for a single company. |
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Definition
| The field of accounting that focuses on providing information for internal decision makers. |
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| Certified Public Accountants (CPAs) |
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Definition
| Licensed professional accountants who serve the general public. |
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Term
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Definition
| Any person or business to whom a business owes money. |
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Term
| Economic Entity Assumption |
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Definition
| An organization that stands apart as a separate economic unit. |
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Term
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Definition
| Providing information that is complete, neutral, and free from error. |
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Term
| Financial Accounting Standards Board (FASB) |
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Definition
| The private organization that oversees the creation and governance of accounting standards in the United States. |
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Term
| Generally Accepted Accounting Principles (GAAP) |
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Definition
| Accounting guidelines, currently formulated by the Financial Accounting Standards Board (FASB); the main U.S. accounting rule book. |
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Term
| Securities and Exchange Commission (SEC) |
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Definition
| U.S. governmental agency that oversees the U.S. financial markets. |
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Term
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Definition
| A business organized under state law that is a separate legal entity. |
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Term
| Limited-Liability Company |
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Definition
| A company in which each member is only liable for his or her own actions. |
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Term
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Definition
| A business with two or more owners and not organized as a corporation. |
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Term
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Definition
| A business with a single owner. |
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Term
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Definition
| A person who owns stock in a corporation. |
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Term
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Definition
| A principle that states that acquired assets and services should be recorded at their actual cost. |
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Term
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Definition
| An examination of a company's financial statements and records. |
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Term
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Definition
| Assumes that the entity will remain in operation for the foreseeable future. |
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Term
| International Accounting Standards Board (IASB) |
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Definition
| The private organization that oversees the creation and governance of International Financial Reporting Standards (IFRS). |
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Term
| International Financial Reporting Standards (IFRS) |
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Definition
| A set of global accounting guidelines, formulated by the International Accounting Standards Board (IASB). |
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Term
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Definition
| The assumption that requires the items on the financial statements to be measured in terms of a monetary unit. |
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Term
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Definition
| The basic tool of accounting, measuring the resources of the business (what the business owns or has control of) and the claims to those resources (what the business owes to creditors and to the owners). Assets = Liabilities + Equity |
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Term
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Definition
| Requires management to review internal control and take responsibility for the accuracy and completeness of their financial reports. |
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Term
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Definition
| Economic resources that are expected to benefit the business in the future. Something the business owns or has control of. |
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Term
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Definition
| Owner contributions to a corporation. |
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Term
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Definition
| The owners' claims to the assets of the business. |
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Term
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Definition
| The costs of selling goods or services. |
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Term
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Definition
| Amounts earned from delivering goods or services to customers. |
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Term
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Definition
| Debts that are owed to creditors. |
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Term
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Definition
| Represents the basic ownership of a corporation. |
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Term
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Definition
| A distribution of a corporation's earnings to stockholders. |
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Term
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Definition
| Equity earned by profitable operations of a corporation that is not distributed to stockholders. |
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Term
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Definition
| The result of operations that occurs when total revenues are greater than total expenses. |
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Term
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Definition
| The result of operations that occurs when total expenses are greater than total revenues. |
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Term
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Definition
| An event that affects the financial position of the business and can be measured with faithful representation. |
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Term
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Definition
| A short-term liability that will be paid in the future. |
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Term
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Definition
| The right to receive cash in the future from customers for goods sold or for services performed. |
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Term
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Definition
| Business documents that are used to communicate information needed to make business decisions. |
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Term
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Definition
| Reports the net income or net loss of the business for a specific period. |
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Term
| Statement of Retained Earnings |
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Definition
| Reports how the company's retained earnings balance changed from the beginning to the end of the period. |
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Term
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Definition
| Reports on the assets, liabilities, and stockholders' equity of the business as of a specific date. |
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Term
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Definition
| Reports on a business's cash receipts and cash payments for a specific period. |
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Term
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Definition
| Measures how profitably a company uses its assets. Net income / Average total assets. |
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