Chap 1 Flashcards
Accounting
The process by which financial info about a business is recorded, classified, summarized, interpreted, and communication to owners, manager, and other interested parties.
Accounting Standards Codification
the source of authoritative US GAAP
Accounting Standards Update
changes to Accounting Standards Codification are communicated through Accounting Standards Update covering approx. 90 topics.
Accounting System
a process designated to accumulate, classify, and summarize financial data.
Auditing
the review of financial statements to assess their fairness and adherence to generally accepted accounting principles.
Auditor’s Report
an independent accountant’s review of a firm’s financial statements.
Certified Bookkeeper
a designation that assures an individual possesses the level of knowledge and skill needed to carry out all key functions though the adjusted trial balance, including payroll.
Certified Public Account
an independent accountant who provides accounting services to the public for a fee.
Corporation
a publicly or privately owned business entity that is separate from its owners and has a legal right to own property and do business in its own name; stockholders are not responsible for the debts or taxes of the business.
Creditor
one to whom money is owed
Discussion Memorandum
an explanation of topic under consideration by the Financial Accounting Standards Board.
Economic Entity
a business or organization whose major purpose is to produce a profit for its owners.
Entity
anything having its own separate identity, such as an individual, town, university, or business.
Exposure Draft
a proposed solution to a problem being considered by the Financial Accounting Standards Board.
Financial Statements
periodic reports of a firm’s financial position or operating results.
Fraud
intentional or reckless acts that result in confiscation of a firm’s assets or the misrepresentation of the firm’s accounting data.
Generally accepted accounting principles
GAAP; accounting standards developed and applied by professional accountants.
Governmental accounting
accounting work performed for a federal, state or local governmental unit.
Internal control
a company’s policies and procedures to safeguard assets, ensure reliability of accounting data, and promote compliance with management policies and applicable laws.
International accounting
the study of accounting principles used by different countries.
Management advisory services
services designed to help clients improve their information systems or their business performance.
Managerial accounting
accounting work carried on by an accountant employed by a single business in industry; the branch of account that provides financial information about business segments, activities, or products.
Partnership
a business entity owned by two or more people who carry on a business for profit and who are legal responsible for the debts and taxes of the business.
Public accountants
members of firms that perform accounting services for other companies.
