Term
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Definition
| the recording, measurement, and interpretation of financial information |
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Term
| Certified Public Accountant (CPA) |
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Definition
| an individual who has been state certified to provide accounting services ranging from the preparation of financial records and the filing of tax returns to complex audits of corporate financial records |
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Term
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Definition
| accountants employed by large corporations, government agencies, and other organizations to prepare ana analyze their financial statements |
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Term
| Certified Management Accountants (CMAs) |
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Definition
| private accountants who, after rigorous examination, are certified by the National Association of Accountants and who have some managerial responsibility |
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Term
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Definition
| the internal use of accounting statements by managers in okannign and directing the organization's activities |
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Term
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Definition
| the movement of money through an organization over a daily, weekly, monthly, or yearly basis |
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Definition
| an internal financial plan that forecasts expenses and income over a set period of time |
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Term
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Definition
| summary of a firm's financial information, products, and growth plans for owners and potential investors |
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Term
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Definition
| a firms economic resources,or items of value that it owns, such as cash, inventory, land, equipment, buildings, and other tangible and intangible things |
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Term
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Definition
| debts that a firm owes to others |
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Term
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Definition
| equals assets minus liabilities and reflects historical values |
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Term
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Definition
| assets equal liabilities plus owners' equity |
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Term
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Definition
| a system of recording and classifying business transactions that maintains the balance of the accounting equation |
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Term
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Definition
| the four-step procedure of an accounting system; examining source documents, recording transactions in an accounting journal, posting recorded transactions, and preparing financial statements |
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Term
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Definition
| a time-ordered list of account transactions |
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Term
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Definition
| a book or computer file with separate sections for each account |
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Term
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Definition
| a financial report that shows an organization's profitability over a period of time--month, quarter, or year |
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Term
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Definition
| the total amount of money recieved from the sale of goods or services, as well as from related business activities |
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Term
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Definition
| the amount of money a firm spent to buy or produce the products it sold during the period to which the income statement applies |
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Term
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Definition
| revenues minus the cost of goods sold required to generate the revenues |
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Term
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Definition
| the costs incurred in the day-to-day operations of an organization |
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Term
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Definition
| the process of spreading the costs of long-lived assets such as buildings and equipment over the total number of accounting periods in which they are expected to be used |
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Term
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Definition
| the total profit, or loss, after all expenses, including taxes, have been deducted from revenue; also called net earnings |
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Term
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Definition
| a "snapshot" of an organization's financial position at a given moment |
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Term
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Definition
| assets that are used or converted into cash within the course of a calendar year |
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Term
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Definition
| money owed to a company by its clients or customers who have promised to pay for the products at a later date |
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Term
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Definition
| a firm's financial obligations to short-term creditors, which must be repaid within one year |
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Term
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Definition
| the amount a company owes to suppliers for goods and services purchased with credit |
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Term
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Definition
| an account representing all unpaid financial obligations incurred by the organization |
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Term
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Definition
| explains how the company's cash changed from the beginning of the accounting period to the end |
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Term
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Definition
| calculations that measure an organization's financial health |
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Term
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Definition
| ratios that measure the amount of operating income or net income an organization is able to generate relative to its assets, owners' equity, and sales |
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Term
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Definition
| net income divided by sales |
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Term
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Definition
| net income divided by assets |
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Term
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Definition
| net income divided by owners' equity; also called return on investment (ROI) |
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Term
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Definition
| ratios that measure how well a firm uses its assets to generate each $1.00 of sales |
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Term
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Definition
| sales divided by accounts receivable |
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Term
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Definition
| sales divided by total inventory |
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Term
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Definition
| sales divided by total assets |
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Term
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Definition
| ratios that measure the speed with which a company can turn its assets into cash to meet short-term debt |
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Term
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Definition
| current assets divided by current liabilities |
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Term
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Definition
| a stringent measure of liquidity that eliminates inventory |
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Term
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Definition
| ratios that measure how much debt an organization is using relative to other sources of capital, such as owners' equity |
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Term
| Debt to Total Assets Ratio |
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Definition
| a ratio indicating how much of the firm is financed by debt and how much is financed by owners' equity |
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Term
| Times Interest Earned Ratio |
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Definition
| operating income divided by interest income |
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Term
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Definition
| data used by investors to compare the performance of one company with another on an equal, per share basis |
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Term
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Definition
| net income or profit divided by the number of stock shares outstanding |
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Term
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Definition
| the actual cash received for each share owned |
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