Term
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Definition
| the information system that identifies, records, and communicates the economic events of an organization to interested users. (p. 4) |
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Term
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Definition
| resources a business own. (p. 12) |
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Term
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Definition
| a financial statement that reports the assets, liabilities, and owner's equity at a specific date. (p. 21) |
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Term
| basic accounting equation |
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Definition
| Asset = Liabilities + Stockholders' Equity. (p. 12) |
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Term
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Definition
| a part of accounting that involves only the recording of economic events. (p. 5) |
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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. (p. 13) |
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Term
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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. (p. 10) |
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Term
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Definition
| an accounting principle that states that companies should record assets at their cost. (p. 9) |
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Term
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Definition
| a distribution by a corporation to its stockholders on a pro rata (equal) basis. (p. 13) |
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Term
| 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 activities of its owner and all other economic entities. (p. 10) |
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Term
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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. (p. 8) |
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Term
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Definition
| the cost of assets consumed or services used in the process of earning revenue. (p. 13) |
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Term
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Definition
| an accounting principle that states that companies should record assets at their fair value. (p. 9) |
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Term
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Definition
| it means that the numbers and descriptions of financial information match what really existed or happened - it is factual (p. 9) |
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Term
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Definition
| the field of accounting that provides economic and financial information for investors, creditors, and other external users. (p. 6) |
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Term
| Financial Accounting Standards Board (FASB) |
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Definition
| a private organization that establishes generally accepted accounting principles (GAAP). (p. 9) |
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Term
| generally accepted accounting principles (GAAP) |
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Definition
| common standards that indicate how to report economic events. (p 8) |
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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. (p. 21) |
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Term
| International 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. (p 9) |
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Term
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Definition
| creditor claims on total assets. (p. 12) |
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Term
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Definition
| the field of accounting that provides internal reports to help users make decisions about their companies. (p. 6) |
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Term
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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. (p. 9) |
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Term
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Definition
| the amount by which revenues exceed expenses. (p. 23) |
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Term
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Definition
| the amount by which expenses exceed revenues. (p. 23) |
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Term
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Definition
| a business owned by two or more persons associated as partners. (p. 10) |
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Term
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Definition
| a business owned by one person. (p. 10) |
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Term
| Public Company Accounting Oversight Board (PCAOB) |
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Definition
| it determines auditing standards and reviews auditing firms. (p. 8) |
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Term
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Definition
| it means that financial information is capable of making a difference in a decision. (p. 9) |
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Term
| retained earnings statement |
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Definition
| a financial statement that summarizes the changes in retained earnings for a specific period of time. (p. 21) |
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Term
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Definition
| the gross increase in stockholders' equity resulting from business activities entered into for the purpose of earning income. (p. 13) |
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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. (p. 7) |
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Term
| Securities and Exchange Commission (SEC) |
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Definition
| a governmental agency that requires companies to file financial reports in accordance with generally accepted accounting principles. (p. 8) |
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Term
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Definition
| a financial statement that summarizes information about the cash inflows (receipts) and cash outflows (payments)for a specific period of time. (p. 21) |
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Term
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Definition
| the ownership claim on a corporation's total assets. (p. 13) |
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Term
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Definition
| the economic events of a business that are recorded by accountants. (p. 14) |
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Term
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Definition
| the examination of financial statements by a certified public accountant in order to express an opinion as to the fairness of presentation. (p. 30) |
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Term
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Definition
| an area of accounting that uses accounting, auditing, and investigative skills to conduct investigations into theft and fraud. (p. 314) |
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Term
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Definition
| an area of public accounting ranging from development of accounting and computer systems to support services for marketing projects and merger and acquisition activities. (p. 30) |
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Term
| private (or managerial) accounting |
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Definition
| an area of accounting within a company that involves such activities as cost accounting, budgeting, design, and support of accounting information systems, and tax planning and preparation. (p. 30) |
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Term
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Definition
| an area of accounting in which the accountant offers expert service to the general public. (p. 30) |
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Term
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Definition
| an area of public accounting involving tax advice, tax planning, preparing tax returns, and representing clients before governmental agencies. (p. 30) |
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