Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
41 Cards in this Set
- Front
- Back
Business
|
All of the activities necessary to provide the members of an economic system with goods and services
|
|
Business Entity
|
An organization operated to earn a profit
|
|
Sole Proprietorship
|
A form of organization with a single owner
|
|
Economic entity concept
|
The assumption that a single, identifiable unit must be accounted for in all situations
|
|
Partnership
|
A business owned by two or more individuals; the organization form often used by accounting firms and law firms
|
|
Corporation
|
A form of entity organized under the laws of a particular state; ownership evidenced by shares of stock
|
|
Share of Stock
|
A certificate that acts as evidence of ownership in a corporation
|
|
Bond
|
A certificate that represents a corporation's promise to repay a certain amount of money and interest in the future
|
|
Nonbusiness entity
|
An organization operated for some purpose other than to earn a profit
|
|
Liability
|
An obligation of a business
|
|
Capital Stock
|
Indicates the owners' contributions to a corporation
|
|
Stockholder
|
One of the owners of a corporation
Alternate term: Shareholder |
|
Creditor
|
Someone to whom a company or person has a debt
Alternate term: Lender |
|
Asset
|
A future economic benefit
|
|
Revenue
|
An inflow of assets resulting from the sale of goods and services
|
|
Expense
|
An outflow of assets resulting from the sale of goods and services
|
|
Accounting
|
The process of identifying measuring, and communicating economic information to various users
|
|
Management accounting
|
The branch of accounting concerned with providing management with information to facilitate planning and control
|
|
Financial Accounting
|
The branch of accounting concerned with the preparation of financial statements for outsider use
|
|
Owners equity
|
The owners claims on the assets of an entity
|
|
Stockholders' equity
|
The owners' equity in a corporation
Alternate term: shareholders equity |
|
Retained earnings
|
The part of owners' equity that represents the income earned less dividends paid over the life of an entity
|
|
Balance sheet
|
The financial statement that summarizes, the assets, liabilities, and owners' equity at a specific point in time
Alternate term: Statement of financial position |
|
Income Statement
|
A statement that summarizes revenues and expenses
Alternate term: Statement of income |
|
Net Income
|
The excess of revenues over expenses
Alternate term: Profits, earnings |
|
Dividends
|
A distribution of the net income of a business to its owners
|
|
Statement of retained earnings
|
The statement that summarizes the income earned and dividends paid over the life of a business
|
|
Statement of cash flows
|
The financial statement that summarizes a company's cash receipts and cash payments during the period from operating, investing, and financing activities
|
|
Cost Principle
|
Assets are recorded at the cost to acquire them
Alternate Term: Original cost or historical cost |
|
Going Concern
|
The assumption that an entity is not in the process of liquidation and that it will continue indefinitely
|
|
Monetary unit
|
The yardstick used to measure amounts in financial statements; the dollar in the United States
|
|
Time Period
|
An artificial segment on the calendar used as the basis for preparing financial statements
|
|
Generally Accepted accounting principles (GAAP)
|
The various methods, rules, practices, and other procedures that have evolved over time in response to the need to regulate the preparation of financial statements.
|
|
Securities and Exchange Commission (SEC)
|
The federal agency with ultimate authority to determine the rules for preparing statements for companies whose stock is sold to the public
|
|
Financial Accounting Standards Board (FASB)
|
The group in the private sector with authority to set accounting standards
|
|
American Institute of Certified Public Accountants
|
The professional organization of certified public accountants
|
|
Certified Public Accountant (CPA)
|
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
|
|
Public Company Accounting Oversight Board (PCAOB)
|
A five-member body created by an act of Congress in 2002 to set auditing standards
|
|
International Accounting Standards Board (IASB)
|
The organization formed to develop worldwide accounting standards
|
|
Auditing
|
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 presented
|
|
Sarbanes-Oxley Act
|
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.
|