This is an information system that generates financial information about a business that users rely on to make decisions.
Accounting
These are the resources and procedures in a business that change economic data into financial information.
Accounting Information System
This is the part of accounting that provides info to internal users
Management Accounting
This part of accounting provides info to external users
Financial Accounting
These people hope their investment value increases...includes
Owners
These lend money to a business
Lendors (Creditors)
these are basically unions
Labor organizations
These people want to know if the business leaders are ethical
Society Groups
Any organization for which financial and economic data is gathered and processed for the purpose of decision making
Accounting entity
These types of companies are owned by one person, whom is not a part of the business entity itself but takes responsibilities for its debts
Single Proprietorship
These companies are owned by multiple people who aren't considered a part of the business entity but are responsible for its debts
Partnership
These are legal entities issued a charter by a state. Owners can sell stock in the company and the company can live after the death of its founders. Even better, owners are in no way responsible for the debts and legalities incurred by the company
Corporation
This presents the results of operations for a period of time
Income Statement
These are the economic resources or items of value a business owns
Assets
What is the Assets equation?
Assets = Liabilities + Owner's Equity
These are claims against assets by creditors
Liabilities
This is the sum of all assets the owner claims to own
Owner's Equity
This is a period of 12 months that companies base their finacial reports on
Fiscal Year
An inflow of assets from the selling of goods or services is called
revenue
The difference between revenues and expenses is called