Vocabulary

a device for recording the changes (increases or decreases) in the fundamental accounting elements

one who is concered with the design of the system of records, the preparation of reports based upon the recorded data, and the interpreation of the reports

a language of business employed to communicate financial information based upon analyzing, recording, classification, summariztion, reporting and interpretation of financial data

Assets equal Liabilities plus Owner's Equity

an unwritten promise by a customer to pay creditors for property, such as merchandise, supplies or equipment purchased on credit or for servics received on credit

an unwritten promise by a customer to pay, at a later date, for goods sold or service rendered

determining the fundamental significance of business transactions so that financial information may be properly processed

property of monetary value ownee by a business

a complete testing and checking of all financial records of a business to be certain that acceptable policies and practices have been followed

a formal financial statement illustrating the assets, liabilities and owner's equity of a business as of a specific date

express the major items in the balance sheet as a percent of the total assets ane compare with previous fiscal periods

record the balance sheet data for two or more comparable periods on the same form so that the information can be readily compared

one who is involved in the process of recording financial information in a prescribed manner

a formal written statement, which may be based upon adjusted historical data, of managmeent's plans for the future expressed in financial terms

factors of production used to create goods or services that are not themselves significantly consumed (though they may depreciate) in the production process. Capital goods may be acquired with money or financial capital

an individual possessing a college education, having practical experience in accounting and who has passed a comprehensive state examination in order to be certifid to practice public accounting in the state

the sorting of the many business transactions in an orderly and systematic manner; sorting or grouping like things together

a separate owner's equity account in which withdrawls of cash or other assets by the owner for personal use are recorded

a decrease in assets, other than withdrawls by the owner, which results from efforts to produce revenues

any consecutive 12 month period

a formal financial statement which presents the income, expenses and resulting net profit or net loss for a given period

explaning the significant events or developments that occur, usually taking the form of analysis and comparisons

any debts that a business owns

measures the ability of the firm to meet its current obligations

the commodities or goods that are bought and sold in business

the difference between gross profit and expenses when gross profit is larger

the difference between gross profit and expenses when expenses are larger

the excess of current assets over current liablities

a written promise to pay a creditor a certain amount in the future

expenses incurred in the normal operation of a business

the amount by which the total assets exceed the total liabilities of a business; an owner's financial intrest in a business

the commiting of a business transaction and the events surrounding such into writing

a formal financial statement which summarizes all of the changes in owner's equity during a specified period or time

bringing accounting data together in a way that will further enhance it's usefulness, usually by means of reports and statements; brinking together various items of information to determin or explain a result

records, sorts and files accounting information

accountants in this area design and implement manual and computerized accounting systems

the process in which accountants help managers develope a financial plan

an internal auditor who has achieved professional recognition by passing the uniform esamination offered by the inwtitute of Internal Auditors

an accountant who passed an examination offered by the Institute of Management Accountants

the accountant who oversees the entire accounting process and is the principal accounting officer of a company

a type of ownership structure in which stockholders own the business. The owners' risk is usually limited to their intitial investment, and they usually have very little influence on the business decisions.

determining the cost of producing specific products or providing services and analysing for cost effectiveness

the first document issued by FASB when developing an accounting standard. This document indentifies the pros and cons of various accounting treatments for an event.

this document explains the rules that FASB believes firms should follow in accounting for a particular event. Based on the responses to the exposure draft, the Board will decide if any changes are necessary before issuing a final standard

includes preparing various reports and financial statements and analyzing operating, investing and financing decisions

Procedures and guidlines developed by the Financial Accounting Standards Board to be followed in the accounting and reporting process

reviewing the operating and accounting control procedures adopted by management to make sure the controls are adequate and being followed; assuring that accurate and timely information is provided.

deciding the meaning and importance of the information in various reports

providing advice to businesses on a wide variety of managerial issues

a business that makes a product to sell

a business that buys products to sell

a paraprofessional who provides many accounting, auditing, or tax services under the direct supervision of an accountant

a type of ownership structure in which more than one person owns the business

following the issuance of a discussion memorandum, public meetings are often held by FASB to gather opionions on the accounting issue

telling the results of the financial information

An act passed by Congress to help improve reporting practices of public companies

a business that provides a service

a type of ownership structure in which one person owns the business

a standard issued by the Financial Accounting Standards Board. These standards must be followed when preparing financial statements

services focused on tax planning, preparing tax returns, and dealing with the Internal Revenue Service and other governmental agencies

• a. The act or practice of imposing taxes.
• b. The fact of being taxed.
• 2. An assessed amount of tax.
• 3. Revenue gained from taxes.

provides a description of the particular type of asset, liability, owner's equity, revenue, or expense

The concept that income determination can be made on a periodic basis

an individual, association, or organization that engages in economic activities and controls specific economic resources

the concept that nonbusiness assets and liabilities are not included in the business entity's accounting records

an economic event that has a direct impact on the business

business transactions provide the necessary input for the accounting information system

a measure of the ease with which an asset will be converted to cash

another term for owner's equity, the amount by which the business asserts exceed the business liabilities

another name for the income statement, which reports the profitability of business operations for a specific period of time.

the financial statements are the output of the accounting information system

recognizing the effect of transactions on the assets, liabilities, owner's equity, revenues, and expenses of a business

another name for the income statement, which reports the profiability of business operations for a specific period to time

the amount a busines charges customers for products sold or services performed

another name for the balance sheet, which reports assets, liabilities, and owner's equity on a specific date

another name for the balance sheet, which reports assets, liabilities and owner's equity on a specific date

reports beginning capital plus net income less withdrawls to compute ending capital

Be able to do transactions & identify the accounts that are affected & whether they increase or decrease

Money paid out; expenditures

analyzing, recording, classifying, summaraizing, reporting, interpreting

is an economic event that has a direct impact on the business