Intro to business Chapter 17

  1. Accounting used to provide information and analysis to managers inside the organization to assist them in decision making.
    managerial accounting
  2. The amount of the business that belongs to the owners minus any liabilities owed by the business.
    owner's wquity
  3. A specialized accounting book or computer program in which informaion from accounting journals is accumulated into specific categories and posted so that managers can find all the informaiton about one account in the same place.
  4. An accountant trained in tax law and responsible for preparing tax returns or developing tax strategies.
    tax accountant
  5. What the business owes to others. (debts)
  6. Accounting system for organizations whose purpose is not generating a profit but serving ratepayers, tax payers, and others according to a duly approved budet.
    government and not - for - profit accounting
  7. financial statement that reports a firm's financial condition at a specific time and is composed of three major accounts: assets, liabilities, and owner's equity.
    balance sheet
  8. An accountant who passes a series of examinizations established by the American Institute of Certified Public Accountants. (AICPA)
    certified public accountant (CPA)
  9. The record book or computer program where accounting data are first entered.
  10. How much a firm earned by buying (or making) and selling merchandise.
    gross profit
  11. An accountant who works for a single firm, government agency, or non-profit organization.
    private accountant
  12. Economic resources ( things of value) owned by a firm.
  13. The recording, classifying, summarizing, and interpreting of financial events and transactions to provide management and other interested parties the information they need to make good decisions.
  14. Long - term assets (patents, trademarks, copyrights) that have no real physical form but do have value.
    intangible assets
  15. The job of reviewing and evaluating the information used to prepare a company's financial statements.
  16. An accountant who has a bachelors degree and two years of experience in internal auditing, and who has passed on exam admennestered by the institute of Internal Auditors
    certified internal auditor (CIA)
  17. The practice of writing every business transaction in two places.
    double - entry bookkeeping
  18. Items that can or will be converted into cash within one year.
    current assets
  19. A six step procedure that results in the preparation and analysis of the major financial statements.
    accounting cycle
  20. The assessment of a firm's financial condition using calulations and interpretations of financial raios developed from the firm's financial statements.
    ratio analysis
  21. An accountant who provides accounting services to individuals or businesses on a fee basis.
    public accountant
  22. The systematic write - off of the cost of a tangible asset over its estimated useful life.
  23. A professional accountant who has met certain educational and experience requirements passed a qualifying exam, and been certified by the Institute of Certified Management Accountants.
    certified management accountant (CMA)
  24. An evaluation and unbiased opinion about the accuracy of a company's financial statements.
    independent audit
  25. Curren liabilities are bills the company owes to others for merchandise or services purchased on credit but not yet paid for.
    accounts payable
  26. The recording of business transactions.
  27. The ease with which an asset can be converted into cash.
  28. Costs involved in operating a business, such as rent, utilities , and salaries.
    operating expenses
  29. Assets that are relatively permanent, such as land, buildings, and equipment.
    fixed assets
  30. Financial statement that reports cash receipts and dispursements related to a firm's three major activities: operations, investments, and financing.
    statement of cash flows
  31. The accumulated earnings from a firm's profitable operations that were reinvested in the business and not paid out to stockholders in dividends.
    retained earnings
  32. The difference between cash coming in and cash going out of a business.
    cash flow
  33. A measure of the cost of merchandise sold or cost of raw materials and supplies used for producing items for resale.
    cost of goods sold
  34. The financial statement that shows a firm's profit after costs, expenses, and taxes; it summarizes all of the sersouces that have come into the firm (revenue), all the resources that have left the firm, and the resulting net income.
    income statement
  35. Revenue left over after all costs and expenses, including taxes are paid.
    net income or net loss
  36. A yearly statement of the financial condition, progress, and expectations of an organization.
    annual report
  37. Short - term or long - term liabilities that a business promises to repay by a cerain date.
    notes payable
  38. A summary of all the financial data in the account ledgers that insures the figures are correct and balanced.
    trial balance
  39. Long - term liabilities that represent money lent to the firm that must be paid back.
    bonds payable
  40. A summary of all the transactions that have occured over a particular period.
    financial statement
  41. Accounting information and analysis prepared for people outside the organization.
    financial accounting
  42. Assets = Liabilities + Owner's equity; this is the basis for the balance sheet.
    fundamental accounting equation
Card Set
Intro to business Chapter 17
Chapter 17