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V's accounting vocab
ch1
Question | Answer |
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Accounting | The process by which financial information about a business is recorded, classified, summarized, interpreted, and communicated to owners, managers, and other interested parties. |
Accounting System | A process designed to accumulate, classify,and summarize financial data |
Accounting | An independent accountant's review of a firm's financial statements |
Auditing | The review of financial statementsto assess their fairness and adherence to generally accepted accounting principles |
Certified public accountant (CPA) | An independent accountant who provides accounting services to the publicfor a fee |
Creditor | One to whom money is owed |
Discussion memorandum | An explanation of a topic under consideration bt the Financial Accounting Standards Board(FASB) |
Corporation | A publicly or privately owned business entity that is seperate from its owners and has a legal right to own property and do business in its own name; stockholders are not responsible for the debts or taxes of the business. |
Economic entity | A business or organization whose major purpose is to produce a profit for its owners |
Entity | Anything having its own seperate identity, such as an individual, a town, a university, or a business. |
Discussion memorandum | An explanation of a topic under consideration bt the Financial Accounting Standards Board(FASB) |
Exposure draft | A proposed solution to a problem being considered by Financial Accounting Standards Board(FASB) |
Financial statements | Periodic reports of a firm's financial position or operating results |
Generally accepted accounting principles (GAAP) | Accounting standards developed and applied by professional |
Governmental accounting | Accounting work performed for a federal, state, or local government unit |
International accounting | The study of accounting principles used by different countries |
Management advisory services | Services designed to help clients improve their information systems or their business performance |
Managerial accounting | Accounting work carried on by an accountant employed by a single business in industry |
Partnership | A business entity owned by two or more people who are legally reponsible for the debts and taxes of the business |
Public accountants | Members of firms that perform accounting services for other companies |
Seperate entity assumption | The concept of keeping a firm's financial records seperate from the owner's personal financial records |
Social entity | a nonprrofit organization, such as a city, public school, or public hospital |
Sole proprietorship | A business entity owned by a one person who is legally responsible for the debts and taxes of the business |
Statements of Financial Accounting Standards | Accounting principles established by th Financial Accounting Standards Board(FASB) |
Stock | Certificates that represent ownership of a corporation |
Stockholders | The owners of a corporation; also called shareholders |
Tax accounting | A service that involves tax compliance and tax plannning |