Term
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Definition
| The prcess of identifying, measuring, and communicaing economic information to various users. |
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Term
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Definition
| The branch of accounting concerned with providing management with information to facilitate the planning and control functions. |
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Definition
| The branch of accounting involving communication with outsiders through financial statements. |
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Definition
| The owners claim to the assets of an equity. |
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Term
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Definition
| The owners equity of a corporation. |
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Term
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Definition
| The part of owners equity that represents the income earned less dividends paid over the life of an entity. |
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Definition
| The financial statement that summarizes the assets, liabilities and owners equity at a specific point in time. |
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Definition
| A statement that summarizes revenues for a period of time. |
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Term
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Definition
| The excess of revenues over expenses. |
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Definition
| A distribution of the net income of a business to its stockholders. |
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| Statement of retained earnings |
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Definition
| The statement that summarizes the income earned and dividends paid over the life of a business. |
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Definition
| The financial statement that summarizes a company's cash receipts and cash payments during the period from operating, investing and financing activities. |
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Term
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Definition
| Assets are recorded and reported at the cost paid to acquire them. |
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Definition
| The assumptionn that an entity is not in the process of liquidation and that it will continue indefinitely. |
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Definition
| The yardstick used to measure amounts in financial statements; the dollar in the United States. |
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Term
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Definition
| A length of time on the calendar used as a basis for preparing financial statements. |
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Term
| Generally accepted accounting principles (GAAP) |
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Definition
| The various methods, rules, practices and other procedures that hae evolved over time in repsonse to the need to regulate the preparation of financial statements. |
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Term
| Securities and Exchange Commission (SEC) |
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Definition
| The federal agency with ultimate authority to determine the rules for perparing statements for companies whose stock is sold to the public. |
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Term
| Financial Accounting Standards Board (FASB) |
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Definition
| The group in the private sector with authority to set accounting standards. |
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| American Institute of Certified Public Accountants (AICPA) |
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Definition
| The professional organization for certified public accountants. |
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Term
| Certified Public Accountant (CPA) |
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Definition
| The designation for an individual who has passed a uniform exam administered by the AICPA and has met other requirements as determined by individual states. |
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Term
| Public Company Accounting Oversight Board (PCAOB) |
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Definition
| A five-member body created by an act of Congress in 2002 to set auditing standards. |
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Term
| International Accounting Standards Board (IASB) |
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Definition
| The organization formed to develop worldwide accounting standards. |
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Term
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Definition
| The process of examining the financial statements and the underlying records of a company to render an opinion as to whether the statements are fairly represented. |
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Term
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Definition
| An act of Congress in 2002 intended to bring reform to corporate accountability and stewardship in the wake of a number of major corporate scandals. |
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