Term
|
Definition
| A system that collects and processes financial information about an organization and reports that information to decision makers. |
|
|
Term
|
Definition
| Used to report the financial position (assets, liabilities and stockholders equity) of an accounting entity at a point in time. |
|
|
Term
|
Definition
| the organization for which financial data are to be collected |
|
|
Term
| Basic Accounting Equation |
|
Definition
(balance sheet equation)
Assets=Liabilities+Stockholders Equity |
|
|
Term
|
Definition
| Reports the revenues less the expeneses of the accounting period |
|
|
Term
|
Definition
| The time period covered by the financial statements |
|
|
Term
| Statement of Retained Earnings |
|
Definition
| reports the way that net income and the distribution of dividends affect the financial position of the company during the accounting period |
|
|
Term
|
Definition
| reports inflows and outflows of cash during the accounting period in the categories of operating, investing and financing |
|
|
Term
|
Definition
| (footnotes) Provide supplemental information about the financial condition of a company without which the financial statements cannot be fully understood |
|
|
Term
| Generally Accepting Accounting Principles |
|
Definition
| GAAP. Are the measurement rules used to develop the information in financial statements |
|
|
Term
| Securities and Exchange Commission |
|
Definition
| SEC. Governemnt agency that determines the financial statements that public companies must provide to stockholders and the measurement rules that they must use to produce them. |
|
|
Term
| Financial Accounting Standards Board |
|
Definition
| FASB. Private sector body that works out the detailed rules that become GAAP. |
|
|
