Term
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Definition
| recognized as having its own separate identity |
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Term
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Definition
| business or organization whose major purpose is to produce a profit for its owners |
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Definition
| nonprofit organization - cities, public schools, public hospitals, etc... |
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Term
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Definition
| process in which financial information about a business is recorded, classified, summarized, interpreted, and communicated |
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Term
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Definition
dual/double entry system
manual/computerized system
organized and meaningful way to accumulate data about a firm's financial affairs |
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Definition
| business entity owned by one person who is legally responsible for the debts and taxes of the business |
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Definition
| business entity owned by two or more people who are legally responsible for the debts and taxes of business |
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Term
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Definition
| publicly or privately owned business entity that is separate from its owners and has a legal right to own property and do business in its own name; stockholders are not responsible for the debts or taxes of the business |
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Term
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Definition
| represents the ownership of the corporation |
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Term
| Separate Entity Assumption |
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Definition
| concept of keeping a firm's financial information separate from owner's personal financial information |
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Term
FASB
(Financial Accounting Standards Board) |
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Definition
| issues statements of financial accounting standards, develops these statements and obtain feedback from interested parties; writes discussion memorandum |
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Term
Generally Accepted Accounting Principles
(GAAP) |
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Definition
| accounting standards developed and applied by professional accountants |
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Term
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Definition
| independent accountant's review of a firm's financial statements |
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