the information system that identifies reords and communicates the eonomic events of an organization to intersted users
assets
resources a business owns
balance sheet
a finicial statement taht reports the assets liabilites andowners equity at a specific date
basic acounting equation
asset = liabilites + stockholders' equity
bookkeeping
a part of accounting taht involves only the recording of economic events
corporation
a business organization as a seperate legal entity under state corporation law, havingownership divided into transferable shares of stock
cost priniple
an accounting principle that states that ompanies should record assets of their cost
dividend
a distribution by a corporation to its stockholders on a pro rata (equal) bases
Economic entity assumption
an assumption that requires that the activites of the entity be kept seperate and distinct from the ativies of its owners and all other economic entities
Ethis
the standard of condut by whih one's ations are judged as right or wrong honest or dishonest, fair or not fair
Expenses
the ost of assets consumed or services used in the process of earning revenue
Financial accounting
the filed of accounting tha provides economic and finical information for investors, creditors and other external users
Financial accounting standards board (FASB)
a private organization that establishes generally accept acounting principles (GAAP)
Generally accepted accounting princples (GAAP)
common standards that indicate how to report economic events
income statement
a finical statement that presents the revenues and expenses and resulting net income or net loss of a copany for a specific period of time
International acounting standards board (IASB)
an accounting standard setting body that issues standards adopted by many countries outside of the U.S.
Liabilites
creditor claim on total asset
Managerial accounting
the field of acounting tha provides internal reports to help users make decisions about their companies
Monetary unit assumption
an assumption stating that companies include in the accounting records only transaction data that can be expressed in terms of money
net income
the amount by which revenues exceed expenses
net loss
the amount by which expenses exceed revenues
partnership
a business owned by two or more persons associated as partners
proprietorship
a business owned by two or more persons
Retained earnings statement
a finncial statement that summarizes the change in retained earnigns for a specific period of time
Revenues
the gross increase in owner's equality resulting from business activities entered into for the purpose of earning income
Sarbanes Oxley Act of 2002 (SOX)
law passed by ongress in 2002 intended to reduce unethical corporate behavior
Securities and Exhange Commission (SEC)
a governmental agency that requires companies to file finicial reports in acordance with generally acepted accounting principles
Statement of cash flows
a finncial statement that summarizes information about the ash inflows receipts) and ash outflows (payments) for a specific period of time
stockholder's equity
the ownership claim on a corporations total assets
transaction
the economi event of a business that are recorded by accountants