Intro to business Chapter 17

Accounting used to provide information and analysis to managers inside the organization to assist them in decision making.

The amount of the business that belongs to the owners minus any liabilities owed by the business.

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.

An accountant trained in tax law and responsible for preparing tax returns or developing tax strategies.

What the business owes to others. (debts)

Accounting system for organizations whose purpose is not generating a profit but serving ratepayers, tax payers, and others according to a duly approved budet.

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.

An accountant who passes a series of examinizations established by the American Institute of Certified Public Accountants. (AICPA)

The record book or computer program where accounting data are first entered.

How much a firm earned by buying (or making) and selling merchandise.

An accountant who works for a single firm, government agency, or non-profit organization.

Economic resources ( things of value) owned by a firm.

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.

Long - term assets (patents, trademarks, copyrights) that have no real physical form but do have value.

The job of reviewing and evaluating the information used to prepare a company's financial statements.

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

The practice of writing every business transaction in two places.

Items that can or will be converted into cash within one year.

A six step procedure that results in the preparation and analysis of the major financial statements.

The assessment of a firm's financial condition using calulations and interpretations of financial raios developed from the firm's financial statements.

An accountant who provides accounting services to individuals or businesses on a fee basis.

The systematic write - off of the cost of a tangible asset over its estimated useful life.

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.

An evaluation and unbiased opinion about the accuracy of a company's financial statements.

Curren liabilities are bills the company owes to others for merchandise or services purchased on credit but not yet paid for.

The recording of business transactions.

The ease with which an asset can be converted into cash.

Costs involved in operating a business, such as rent, utilities , and salaries.

Assets that are relatively permanent, such as land, buildings, and equipment.

Financial statement that reports cash receipts and dispursements related to a firm's three major activities: operations, investments, and financing.

The accumulated earnings from a firm's profitable operations that were reinvested in the business and not paid out to stockholders in dividends.

The difference between cash coming in and cash going out of a business.

A measure of the cost of merchandise sold or cost of raw materials and supplies used for producing items for resale.

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.

Revenue left over after all costs and expenses, including taxes are paid.

A yearly statement of the financial condition, progress, and expectations of an organization.

Short - term or long - term liabilities that a business promises to repay by a cerain date.

A summary of all the financial data in the account ledgers that insures the figures are correct and balanced.

Long - term liabilities that represent money lent to the firm that must be paid back.

A summary of all the transactions that have occured over a particular period.

Accounting information and analysis prepared for people outside the organization.

Assets = Liabilities + Owner's equity; this is the basis for the balance sheet.