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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
| Resources a business owns. |
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Definition
| A financial statement that reports the assets, liabilites, and owner's equity at a specific date. |
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| Basic accounting equation |
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Definition
| Assets = Liabilities + Stockholder's Equity |
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Definition
| A part of accounting that involves only the recording of economic events. |
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Definition
| A business organized as a separate legal entity under state corporation law, having ownership divided into transferable shares of stock. |
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Definition
| An accounting principle that states companies should record assets at their cost. |
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| A distribution by a corporation to its shockholders on a pro rata (equal) basis. |
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| Economic entity assumption |
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Definition
| An assumption that requires that the activities of the entity be kept separate and distinct from the activites of its owner and all other ecomonic entities. |
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Definition
| The standards of conduct by which one's actions are judged as right or wrong. honest or dishonest, fair or not fair. |
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Definition
| The cost of assets consumed or services used in the process of earning revenue. |
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Definition
| The field of accounting that provides economic and financial information for investors, creditors, and other external users. |
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Term
| Finacial Accounting Standards Board(FASB) |
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Definition
| A private organization that estaablishes generally acceped accounting principles(GAAP). |
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| Generally accepted accounting principle(GAAP) |
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Definition
| Common Standards that indicate how to report economic events. |
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Definition
| A financial statement that presents the revenues and expenses and resulting net income or net loss off a company for a specific period of time. |
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| Interantional Accounting Standards Board (IASB) |
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Definition
| An accounting standard-setting body that issues standards adopted by many countries outside of the United States. |
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Definition
| Creditor claims on total assets. |
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Definition
| The field of accounting that provides internal reports to help users make decisions about their companies. |
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Definition
| An assumption stating that companies include in the accounting records only transaction data that can be expressed in terms of money. |
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Definition
| The amount by which revenues exceed expenses. |
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Definition
| The amount by which expenses exeed revenues. |
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Definition
| A business owned by two or more persons associated as partners. |
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Definition
| A business owned by one person. |
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Term
| Retained earenings statement |
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Definition
| A financial statement that summarizes the changes in retained earnings for a specific period of time. |
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Term
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Definition
| The gross increase in owne's equity resulting from business activities entered into for the purpose of earning income. |
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Term
| Sarbanes-Oxley Act of 2002 (SOX) |
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Definition
| Law passed by congress in 2002 intended to reduce unethical corporate behavior. |
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| Securities and Exchange Commission (SEC) |
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Definition
| A governmental agencey that requires companies to file financial reports in accordance with generally accepted accounting principles. |
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Definition
| A financial statement that summerizes infromation about the cash inflows (receipts) and cash outflows (payments) for a specific period of time. |
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Definition
| The ownership claim on a coporations total assets. |
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Term
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Definition
| The economic events of a business that are recorded by accountants. |
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