Chapter 1 Flashcards
The process of identifying, measuring, and communicating economic information about the organization for the purpose of making decisions informed judgments
Accounting
Accounting that recognizes revenues and expenses as they occur, even though the cash receipt from the revenue or the cash disbursement related to the expense may occur before or after the event that causes revenue or expense recognition
Accrual accounting
A document distributed to shareholders and other interested parties that contains the financial statements, explanatory notes, and management decisions and analysis of financial an operating factors that affected the firm together with the report of the external auditors examination of the financial statements
Annual report
The process of examining the financial statements of an entity by an independent third-party with an objective of expressing an opinion about the fairness of the presentation of the entities financial position, results of operations, changes in financial position, and cash flow’s. This practice is also referred to as public accounting
Auditing
Procedures that are used to keep track of financial transactions and accumulate the results of an end of these financial activities
Bookkeeping
Cash receipts or disbursements of an entity
Cash flow – page 5
Companion professional designations earned by passing broad, for part examinations and meeting certain experience requirements. Examination topics include economics, corporate finance, information management, financial accounting and reporting, management reporting, decision analysis, and behavioral issues.
Certified management accountant and\or certified in financial management
A professional designation earned by filling certain education and experience requirements, in addition to passing a comprehensive, for part examination. Examination topics include financial accounting theory and practice, income tax accounting, managerial accounting, governmental a non-for profit accounting, editing, business law, and other aspects of the business environment
Certified public accountant
The job title of the person who is the chief accounting officer of an organization. They are usually responsible for both of financial and managerial accounting functions. Sometimes referred to as comptroller
Controller
A subset of managerial accounting that relates to the determination and accumulation of product, process, or service costs
Cost accounting
A group authorized by the US Congress to establish cost accounting standards for government contractors
Cost accounting standards board (CASB)
An organization or individual who lens to the entity. Examples include suppliers who ship merchandise to the entity prior to receiving payment for their goods and banks that lend cash to the entity
Creditor
An organization, individual, or a group of organizations or individuals for which accounting services are performed
Entity
Accounting that focuses on reporting entities financial position at a point in time and\or it’s result of operations and cash flows for a period of time
Financial accounting
And organization composed of people from the public accounting profession, businesses, and the public that is responsible for the funding of the appointing members of the financial accounting standards board and the governmental accounting standards board
Financial accounting foundation
The body responsible for establishing generally excepted accounting principles
Financial accounting standards board (FASB)
Established by the Financial Accounting Foundation to develop guidelines for financial accounting and reporting by state and local government units.
Governmental Accounting Standards Board (GASB)
The personal characteristic of an accountant, especially an auditor, that refers to both appearing and in fact being objective and impartial.
Independence
The report accompanying audited financial statements that explain briefly the auditor’s responsibility and the extent of work performed. The report includes an opinion about whether the information contained in the financial statement is presented fairly in accordance with generally accepted accounting principals
Independent auditor’s report
The personal characteristic of honesty, including being forthright in dealings and communications with others.
Integrity
The practice of auditing within a company by employees of the company
Internal Auditing
An organization or individual who has the ownership interest in the firm. For corporations, referred to as stockholders or shareholders
Investor
Accounting that is concerned with the internal use of economic and financial information to plan and control many activities of an entity and to support the management decision-making process.
Managerial Accounting
The personal characteristic of impartiality, including freedom of conflict of interest.
Objectivity
The segment of the accounting profession that provides auditing, income tax accounting, and management consulting services to clients
Public Accounting
Established in 2002 with authority to set and enforce auditing and ethics standards for public companies and their auditing firms: affiliated with the SEC
Public Company Accounting Oversite Board (PCAOB)
A unit of the federal government that is responsible for establishing regulations and assuring full disclosure to investors about companies and their securities that are traded in interstate commerce.
Securities and Exchange Commission
Pronouncements of the Financial Accounting Standards Board (FASB) that constitute generally accepted accounting principals.
Statements of financial Accounting Standards
