Shared Flashcard Set

Details

ADM 1100
CH.11
42
Business
Undergraduate 1
06/17/2013

Additional Business Flashcards

 


 

Cards

Term
Accounting
Definition
A comprehensive system for collecting, analyzing, and communicating financial information.
Term
Bookkeeping
Definition
Recording accounting transactions.
Term
Accounting Information System (AIS)
Definition
An organized procedure for identifying, measuring, recording, and retaining financial information so that it can be used in accounting statements and management reports.
Term
Controller
Definition
The individual who manages all the firm's accounting activities.
Term
Financial Accounting System
Definition
The process whereby interested groups are kept informed about the financial condition of a firm.
Term
Managerial (management) Accounting
Definition
Internal procedures that alert managers to problems and aid them in planning and decision making.
Term
Chartered Accountant (CA)
Definition
An individual who has met certain experience and education requirements and has passed a licensing examination; acts as an outside accountant for other firms.
Term
Certified General Accountant (CGA)
Definition
An individual who has completed an education program and passed a national exam; works in private industry or CGA firm.
Term
Certified Management Accountant (CMA)
Definition
An individual who has completed a university degree, passed a national examination, and completed a strategic leadership program; works in industry ans focuses on internal management. accounting.
Term
Audit
Definition
An accountant's examination of a company's financial records to determine if it used proper procedures to prepare its financial reports.
Term
Forensic Accountant
Definition
An accountant who tracks down hidden funds in business firms, usually as a part of a criminal investigation.
Term
Generally Accepted Accounting Principles (GAAP)
Definition
Standard rules and methods used by accountants in preparing financial reports.
Term
Management Consulting Services
Definition
Specialized accounting services to help managers resolve a variety of problems in finance, production scheduling, and other areas.
Term
Private Accountant
Definition
An accountant hired as a salaried employee to deal with a company's day to day accounting needs.
Term
Asset`
Definition
Anything of economic value owned by a firm or individual.
Term
Liability
Definition
Any debt owed by a firm or individual to others.
Term
Owner's Equity
Definition
Any positive difference between a firm's assets and it's liabilities; what would remain for a firm's owners if the company were liquidated, all its assets were sold, and its debts were paid.
Term
Double-entry accounting system
Definition
A bookkeeping system developed in the 15th century and still in use, that requires every transaction to be entered in two ways-how it affects liabilities and owner's equity-so that the accounting equation is always in balance.
Term
Financial Statement
Definition
Any of several types of broad reports regarding a company's financial status; most often used in reference to balance sheets, income statements, and/or statements of cash flows.
Term
Current Assets
Definition
Cash and other assets that can be converted into cash within a year.
Term
Liquidity
Definition
The ease and speed into which an asset can be converted to cash; cash is said to be perfectly liquid.
Term
Accounts Receivable
Definition
Amounts due to the firm from customers who have purchased goods or services on credit; a form of current asset.
Term
Merchandise Inventory
Definition
The cost of merchandise that has been acquired for sale to customers but is still on hand.
Term
Prepaid Expense
Definition
Includes supplies on hand ans rent paid for the period to come.
Term
Fixed Assets
Definition
Assets that have been long-term use or value to the firm such as land, buildings and machinery.
Term
Depreciation
Definition
Distributing the cost of a major asset over the years in which it produces revenues; calculated by each year subtracting the asset's original value divided by the number of years in the productive life.
Term
Intangible Assets
Definition
Non-physical assets such as patents, trademarks, copyrights, and franchise fees that have economic value but whose precise value is difficult to calculate.
Term
Goodwill
Definition
The amount paid for an existing business beyond the value of its other assets.
Term
Current Liabilities
Definition
Any debts owed by the firm that must be paid within one year.
Term
Accounts Payable
Definition
Amounts due from the firm to its suppliers for goods and/or services purchased on credit; a form of current liability.
Term
Long-term Liabilities
Definition
Any debts owed by the firm that are not due for at least one year.
Term
Paid-in capital
Definition
Any additional money invested in the firm by the owners.
Term
Retained earnings
Definition
A company's net profits less any dividend payments to shareholders.
Term
Income (Profit-and-Loss)Statement
Definition
A type of financial statement that describes a firm's revenues and expenses and indicates whether the firm has earned a profit or suffered a loss during a given period.
Term
Revenues
Definition
Any monies received by a firm as a result of selling a good or service or from other sources such as interest, rent, and licensing fees.
Term
Cost of Goods Sold
Definition
Any expenses directly involved in producing or selling a good or service during a given time period.
Term
Gross Profits (Gross Margin)
Definition
A firm's revenues (gross sales) less its cost of goods sold.
Term
Operating Expenses
Definition
Costs incurred by a firm other than those included in cost of goods sold.
Term
Operating Income
Definition
Compares the gross profit from business operations against operating expenses.
Term
Net Income (Net profit or net earnings)
Definition
A firm's gross profit less its operating expenses and income taxes.
Term
Statement of Cash Flows
Definition
A financial statement that described a firm's generation and use of cash during a given period.
Term
Budget
Definition
A detailed financial plan for estimated receipts and expenditures for a period of time in the future, usually one year.
Supporting users have an ad free experience!