Ch. 16 (3) Flashcards
Accounting: define “complience”
the job of reviewing and evaluating the records used to prepare a company’s financial statements
the most important function and income generator for public accounting firms is …
preforming independent audits (examinations) of the books and financial statements of companies
an independent audit is …
an evaluation and unbiased opinion about the accuracy of a company’s financial statements
a certified management accountant is an accountant who …
has met the examination, education, and experience requirements of the Society of Management Accountants of Canada
a chartered accountant is an accountant who …
has met the examination, education, and experience requirements of the Canadian Institute of Chartered Accountants (CICA)
chartered accountants are widely recognized as …
the leading financial and accounting professionals in Canada
a certified general accountant is an accountant who …
has met the examination, education, and experience requirements of the Certified General Accountants Association of Canada
list the first three steps in the accounting cycle
1 analyze source documents (sales slips, travel records etc.)
2 record transactions in journals
3 transfer (post) journal entries to ledger
list the last three steps in the accounting cycle
take a trial balance, prepare financial statements (balance sheet, income statement, statement of cash flows), analyze financial statements
accountants … by … and then … and …
classify and summarize financial data provided by bookkeepers and then interpret the data and report the info to management
define what a journal is in accounting
the record book where accounting data are first entered
describe “double-entry bookkeeping”
the concept of every business transaction affecting at least two accounts
define what a “ledger” is
a specialized accounting book in which information from accounting journals is accumulated into accounts and posted so that managers can find all of the info about a specific account in one place
what is a “trial balance”?
a summary of all the data in the account ledgers to show whether the figures are correct and balanced
list two ways tech is used in accounting
accounting software and cloud computing
list the three key financial statements of a business
the balance sheet, the income statement and, the cash flow statement
the balance sheet reports …
the firm’s financial position on a specific date, normally at the end of a period
the income statement summarizes …
revenues, cost of goods, and expenses (including taxes) for a specific period of time, and it highlights the total profit or loss the firm experienced during that period
the statement of cash flow provides a summary of …
money coming into and going out of the firm during a period. it tracks a company’s cash receipts and cash payments
a financial statement is a …
summary of all the transactions that have occurred over a particular period
financial statements indicate a firm’s
financial health and stability and are a key factor in management decision making
