accounting stice vocabulary ch 1a.txt

  1. accounting
    A service activity whose “function is to provide quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions—in making reasoned choices among alternative courses of action” (Statement of the Accounting Principles Board No. 4, par. 40).
  2. accounting periods
    The time intervals used for financial reporting; due to the need for timely information, the life of a business or other entity is divided into specific accounting periods for external reporting purposes. One year is the normal reporting period, although most large U.S. companies also provide quarterly statements.
  3. APB
    Accounting Principles Board
  4. Accounting Principles Board (APB)
    A board of the AICPA that issued Opinions establishing accounting standards during the period 1959–1973.
  5. Accounting Standards Update
    The official statements of the FASB that govern external financial reporting.
  6. AAA
    American Accounting Association
  7. American Accounting Association (AAA)
    An organization primarily for accounting professors. The AAA’s role in establishing accounting standards includes research projects to help the FASB and a forum for representing different points of view on various issues.
  8. AICPA
    American Institute of Certified Public Accountants
  9. American Institute of Certified Public Accountants (AICPA)
    A professional organization for CPAs in which membership is voluntary. It publishes a monthly journal, the Journal of Accountancy.
  10. arm’s-length transactions
    Exchanges between parties who are independent of each other. A traditional assumption in accounting is that recorded transactions and events are executed between independent parties, each of whom is acting in its own best interest.
  11. CPA
    certified public accountants
  12. certified public accountants (CPAs)
    An accountant who has met specified professional requirements established by the AICPA and local and state societies. A CPA often does not work for a single business but provides a variety of professional services for many different individual and business clients. A key service provided by CPAs is the performance of independent audits of financial statements.
  13. comparability
    A quality of useful accounting information based on the premise that information is more useful when it can be related to a benchmark or standard, such as data for other firms within the same industry.
  14. comprehensive income
    A concept of income measurement and reporting that includes all changes in owners’ equity except investments by and distributions to owners.
  15. conceptual framework
    A theoretical foundation underlying accounting standards and practice. The framework established by the FASB encompasses the objectives, fundamental concepts, and implementation guidelines described in FASB Concepts Statement Nos. 1–7.
Card Set
accounting stice vocabulary ch 1a.txt