The Language Of Business Flashcards
Accounting
Process of recording, summarizing, interpreting, and communicating financial info to interested parties
Accounting System
Designed to collect, classify, and summarize financial data
Financial Statements
Periodic financial reports
Certified Bookkeeper
Required to pass national exam, sign code of ethics, gain 2 yrs experience or 3000 hrs
Three Areas of Accounting
Public, managerial, and government
Public Accounting
Services offered usually include auditing, tax accounting, management advisory services
CPA
Requires certain number of college credits, demonstration of good character, uniform CPA exam, experience requirement, follow code of ethics
Auditing
Review of financial statements to ensure they follow GAAP, performed by CPA
Tax Accounting
Tax compliance and planning
Management Advisory Services
Improvement of info systems and business performance
Managerial Accounting Activities
Establish accounting policies
Manage accounting system
Prep financial statements
Interpret
Advise
Tax Prep and Planning
Prep internal reports
Governmental Accounting
Staff of government entities
Accountants can audit financial statements to uncover violations
Users of Financial Info
Owners and Managers
Suppliers
Banks
Tax Authorities
Customers
Employees and Unions
Accounting Standard Codification
The source of authoritative U.S. GAAP
Accounting Standards Update
communicates changes to codification, covering approximately 90 topics
corporation
public/private business entity, sperate from owners, legal right to own property and do business in its own name
Discussion Memorandum
explains topic under consideration by FASB
Economic Entity
business or org with purpose to produce profit for owners
Exposure Draft
proposed solution to problem under consideration by FASB
Governmental Accounting
accounting performed for fed, state, or local gov unit
Partnership
business entity owned by two or more people, legally responsible for debts and taxes of business
Separate Entity Assumption
Social Entity
Sole Proprietorship
Statements of Financial Accounting Standards
Tax Accounting
