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The information system that measures business activities, processes that information into reports, and communicates the results to decision makers |
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A liability backed by the general reputation and credit standing of the debtor |
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| A promise to receive cash from customers to whom the business has sold goods or for whom the business has perfromed services |
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The basic tool of accounting, measuring the resources if the business and the claims to those resources
ASSETS= LIABILITIES + OWNER'S EQUITY |
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| An economic resource that is expected to be of benefit in the future |
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| An examination of a company's financial situation |
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Balance Sheet (Statement of financial position) |
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An entity's assets, liabilities, and owner's equity as of a specific date |
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| The claim of a business owner to the assets of the business |
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Certified Management Accountant (CMA) |
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| A licensed accountant who works for a single company |
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- A business owned by stockholders - Begins when the state approves it articles of incorporation - Legal entity |
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| An organization or a section of an organization that, for accounting purposes, stands apart from other organizations and individuals as a seperate economic unit |
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| Decrease in owner's equity that occurs from using assets or increasing liabilities in the course of delivering goods or services to customers |
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The branch of accounting that focuses in information for people outside the firm - External |
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Financial Accounting Standards Board ( FASB) |
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| The private organization that determines how accounting is practiced in the US |
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| Documents that report on a business in monetary amounts, providing info to help people make informed business decisions |
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Generally Accepted Accounting Principles (GAAP) |
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| Accounting for guidelines, formulated by the FASB , that govern how accountants measure, process and communicate financial information |
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Income Statement (Statement of Earnings, Statement of Operations) |
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| Summary of an entity's revenues, expenses, and net income or net loss for a specific period. |
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| An economic obligation (a debt) payable to an individual or an organization outside the business |
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The branch of accounitng that focuses on info for internal decision makers of a business - internal |
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Net Income (Net earnings, net profit) |
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| Excess of total revenues over total expenses |
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| A written promise of a future payment |
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The claim of a business owner to the assets of the business |
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| Amounts removed from the business by an owner |
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A business with two or more owners |
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| A business with a single owner |
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| Amounts earned by delivering goods or services to customers. Revenues increase owner's equity. |
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| A person who owns stock in a corporation |
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Report of cash receipts and cash payments during a period |
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Statement of Earnings (Income statement, statement of Operation) |
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Definition
| Summary of an entity's revenues, expenses and net income or net loss for a specific period |
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Statement of Owner's Equity |
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| Summary of the changes in an entity's owner's equity during a specific period |
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| A person who owns stock in a corporation |
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Definition
| An event that affects the financial position of a particular entity and can be recorded reliably |
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