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Definition
| A business owned by one person |
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Definition
Simple to establish
-Owner controlled
-Tax advantage |
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Definition
| A business owned by two or more persons associated as partners |
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Definition
-Simple to establish
-Share control
-Broader skills & resources
-Tax advantages |
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Definition
| A business organized as a separate legal entity having ownership divided into transferable shares of stock |
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Definition
-Easier to transfer ownership
-Easier to raise funds
-No personal liability |
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Term
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Definition
| The information system that identifies, records, and communicates the economic events of an organization to interested users. |
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Definition
| are managers who plan, organize, and run a business |
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Term
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Definition
| (owners) use accounting information to make decisions to buy, hold, or sell stock. |
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Term
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Definition
| such as suppliers and bankers use accounting information to evaluate the risks of selling on credit or lending money. |
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Definition
want to know whether the company complies with the tax laws.
(Internal Revenue Service) |
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Term
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Definition
are interested in whether a company will continue to honor product warranties and otherwise support its product lines
-(like General Motors) |
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Definition
| want to know whether the owners have the ability to pay increased wages and benefits. |
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Term
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Definition
| want to know whether the company is operating within prescribed rules. |
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Definition
| to reduce unethical corporate behavior and decrease the likelihood of future corporate scandals. |
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Term
| Accounting Information System |
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Definition
| keeps track of the results of each of the various business activities—financing, investing, and operating. |
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Term
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Definition
| The debts and obligations of a business. Liabilities represent the amounts owed to creditors. |
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Term
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Definition
| Term used to describe the total amount paid in by stockholders for the shares they purchase. |
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Term
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Definition
Payments of cash from a corporation to its stockholders.
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Term
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Definition
Resources owned by a business.
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Term
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Definition
| Property, Plant, and equiptment |
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Term
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Definition
| The increase in assets that result from the sale of a product or service in the normal course of business. |
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Term
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Definition
| The cost of assets consumed or ser vices used in the process of generating revenues. |
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Term
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Definition
The amount by which revenues exceed expenses.
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Term
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Definition
| The amount by which expenses exceed revenues. |
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Term
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Definition
| A financial statement that presents the revenues and expenses and resulting net income or net loss of a company for a specific period of time. |
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Term
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Definition
| The amount of net income retained in the corporation. |
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Term
| Retained Earnings Statements |
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Definition
| A financial statement that summarizes the amounts and causes of changes in retained earnings for a specific period of time. |
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Term
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Definition
| The owners' claim on total assets. |
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Term
| Basic Accounting Equation |
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Definition
| Assets = Liabilities + Stockholders' Equity. |
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Term
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Definition
| A financial statement that provides financial information about the cash receipts and cash payments of a business for a specific period of time. |
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Term
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Definition
| A presentation of the financial statements of a company for more than one year. |
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Term
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Definition
| A report prepared by corporate management that presents financial information including financial statements, notes, a management discussion and analysis section, and an independent auditor's report. |
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Term
| Management Discussion and Analysis |
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Definition
A section of the annual report that presents management's views on the company's ability to pay near-term obligations, its ability to fund operations and expansion, and its results of operations.
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Term
| Note to the Financial Statements |
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Definition
Notes that clarify information presented in the financial statements, as well as expand upon it where additional detail is needed.
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Term
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Definition
A report prepared by an independent outside auditor stating the auditor's opinion as to the fairness of the presentation of the financial position and results of operations and their conformance with generally accepted accounting standards.
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Term
| Certified Public Accountant |
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Definition
An individual who has met certain criteria and is thus allowed to perform audits of corporations.
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Term
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Definition
| A financial statement that reports the assets and claims to those assets at a specific point in time |
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