Term
|
Definition
| A system of maintaining records of a company's operations and communicating that information to decision makers.(4) |
|
|
Term
|
Definition
| Equation that shows a company's resources (assets) equal creditors' and owners' claims to those resources (liabilities and stockholders' equity). (7) |
|
|
Term
|
Definition
| Resources owned by a company (7) |
|
|
Term
|
Definition
| Trained individuals hired by a company as an independent party to express a professional opinion of the accuracy of that company's financial statements. (23) |
|
|
Term
|
Definition
| A financial statement that presents the financial position of the company on a particular date. (13) |
|
|
Term
|
Definition
| The ability of users to see similarities and differences between two different business activities. (30) |
|
|
Term
|
Definition
| The use of similar accounting procedures either over time for the same company or across companies at the same point in time. (30) |
|
|
Term
|
Definition
| An entity that is legally separate from its owners. (6) |
|
|
Term
|
Definition
| Financial Accounting information is provided only when the benefits of doing so exceed the costs. (30) |
|
|
Term
|
Definition
| The ability of the information to be useful in decision making (29) |
|
|
Term
|
Definition
| Cash Payments to Stockholders (8) |
|
|
Term
| Economic Entity Assumption |
|
Definition
| All economic events with a particular economic entity can be identified (32) |
|
|
Term
|
Definition
| A code or moral system that provides criteria for evaluation right and wrong behavior (24) |
|
|
Term
|
Definition
| Costs of providing products and services (8) |
|
|
Term
|
Definition
| Accounting information that is complete, neutral, and free from material error (29) |
|
|
Term
|
Definition
| Measurement of business activities of a company and communication of those measurements to external parties for decision-making purposes. (5) |
|
|
Term
| Financial Accounting Standards Board (FASB) |
|
Definition
| An independent, private body that has primary responsibility for the establishment of GAAP in the United States. (21) |
|
|
Term
|
Definition
| Periodic reports published by the company for the purpose of providing information to external users. (10) |
|
|
Term
|
Definition
| Transactions involving external sources of funding. (5) |
|
|
Term
| Generally Accepted Accounting Principles (GAAP) |
|
Definition
| The rules of financial accounting (21) |
|
|
Term
|
Definition
| In the absence of information to the contrary, a business entity will continue to operate indefinitely. (31) |
|
|
Term
|
Definition
| A financial statement that reports the company's revenues and expenses over an interval of time. (11) |
|
|
Term
| International Accounting Standards Board (IASB) |
|
Definition
| An international accounting standard-setting body responsible for the convergence of accounting standards worldwide. (22) |
|
|
Term
| International Financial Reporting Standards (IFRS) |
|
Definition
| The standards being developed and promoted by the IASB. (22) |
|
|
Term
|
Definition
| Transactions involving the purchase and sale of (1) long-term resources such as land, buildings, equipment, and machinery and (2) any resources not directly related to a company's normal operations. (5) |
|
|
Term
|
Definition
| Amounts owed to creditors. (7) |
|
|
Term
|
Definition
| The impact of financial accounting information on investors' and creditors' decisions. (3) |
|
|
Term
|
Definition
| A unit or scale of measurement can be used to measure financial statement elements. (31) |
|
|
Term
|
Definition
| Difference between revenues and expenses. (8) |
|
|
Term
|
Definition
| Transactions involving the primary operations of the company, such as providing products and services to customers and the associated costs of doing so, like utilities, taxes, advertising, wages, rent, and maintenance. (5) |
|
|
Term
|
Definition
| Business owned by two or more persons. (9) |
|
|
Term
|
Definition
| The economic life of an enterprise (presumed to be indefinite) can be devided into artificial time periods for financial reporting. (31) |
|
|
Term
|
Definition
| Accounting information that possesses confirmatory value and/or predictive value. (29) |
|
|
Term
|
Definition
| Cumulative amount of net income earned over the life of the company that has not been distributed to stockholders as dividends. (12) |
|
|
Term
|
Definition
| Amounts earned from selling products or services to customers. (8) |
|
|
Term
|
Definition
| Formally titled the Public Company Accounting Reform and Investor Protection Act of 2002, this act provides regulation of auditors and the types of services they furnish to clients, increases accountability of corporate executives, addresses conflicts of interest for securities analysts, and provides for stiff criminal penalties for violators. (24) |
|
|
Term
|
Definition
| A business owned by one person. (9) |
|
|
Term
|
Definition
| A financial statement that measures activities involving cash receipts and cash payments over an interval of time. (15) |
|
|
Term
| Statement of Stockholders' Equity |
|
Definition
| A financial statement that summarizes the changes in stockholders' equity over an interval of time. (12) |
|
|
Term
|
Definition
| Stockholders', or owners', claims to resources, which equal the difference between total assets and total liabilities. (7) |
|
|
Term
|
Definition
| Information being available to users early enough to allow them to use it in the decision process. (30) |
|
|
Term
|
Definition
| Users must understand the information within the context of the decision they are making. (30) |
|
|
Term
|
Definition
| A consensus among different measurers. (30) |
|
|
Term
|
Definition
| Assets = Liabilities + Stockholder' Equity |
|
|
Term
| Stockholders' Equity (Equation) |
|
Definition
| Stockholders' Equity = Assets - Liabilities |
|
|
Term
|
Definition
| Net Income = Revenues - Expenses |
|
|
