the recording of the day-to-day financial activities of a company and
Accounting organization of that information into summary reports used to evaluat
the company's financial status
Bookkeeping the preservation of a systematic, quantitative record of an activity
used by a business to handle routine bookkeeping tasks and to struct
accounting system the information so it can be used to evaluate the performance and
financial status of the business
Accounting information Info that is intended to be useful in making decisions about the future
The balance sheet, the income What are the three primary financial statements?
statement, and the statement of
cashflows
Who is financial accounting information primarily prepared for and us
External Users
by?
Managerial Accounting the name given to accounting systems designed for internal users
Balance Sheet Reports a company's assets, liabilities, and owners' equity
Income Statement reports the amount of net income earned by a company during a per
,Net income the excess of a company's revenues over its expenses
reports the amount of cash collected and paid out by a company in t
statement of cash flows
following three types of activities: operating, investing, and financing
FASB Which private body establishes accounting rules in the U.S.?
Financial Accounting Standards a private body established and supported by the joint efforts of the U
Board (FASB) business community, financial analysts, and practicing accountants
the organization that regulates U.S. stock exchanges and seeks to cre
The Securities and Exchange
fair information environment in which investors can buy and sell stock
Commission (SEC)
without fear that companies are hiding or manipulating financial data
American Institute of Certified Public the professional organization of certified public accountants (CPAs) in
Accountants (AICPA) United States
the organization that inspects the audit practices of registered audit f
Public Company Accounting and has statutory authority to investigate questionable audit practices
Oversight Board (PCAOB) to impose sanctions such as barring an audit firm from auditing SEC-
registered companies
, Gov't agency that establishes rules to define exactly when income sho
be taxed. It has no role in setting financial accounting rules; and a
Internal Revenue Service (IRS)
company's financial statements are not used in determining how much
the company must pay
Organization that was formed to develop a common set of worldwide
The International Accounting
accounting standards. Its standards are increasingly accepted worldw
Standards Board (IASB)
but FASB rules are still the standard in the United States.
1. Rapid Advancements in the IT field Which 3 factors have combined to make right now a time of significan
2. the international integration of change in accounting?
worldwide business
3. Increased scrutiny associated with
large corporate accounting scandals
A wave of accounting scandals starting in 2001 resulted in this act, wh
Sarbanes-Oxley Act increases U.S. federal government scrutiny of the production of financ
statements.
reports a company's financial position at a specified point in time and
Balance Sheet the company's resources (assets), obligations (liabilities), and net
ownership interest (owners' equity).
, probable future economic benefits obtained or controlled by a comp
Assets
as a result of past transactions or events
probable future sacrifices of economic benefits arising from present
Liabilities obligations of a company to transfer assets or provide services in the
future as a result of past transactions or events
the residual interest in the assets of a company that remains after
Owners' equity
deducting its liabilities
Assets = Liabilities + Owners' Equity What is the accounting equation?
By order of liquidity In what order are assets typically listed on the balance sheet?
Current and Long-term Liabilities are divided into which 2 categories on the balance sheet?
states that the financial results of an What is the entity concept?
economic entity should be reported
separately from the financial results
of other entities, even though all
those entities may be controlled by
the same person
(revenues-expense= net income) Equation to calculate net income
Accounting organization of that information into summary reports used to evaluat
the company's financial status
Bookkeeping the preservation of a systematic, quantitative record of an activity
used by a business to handle routine bookkeeping tasks and to struct
accounting system the information so it can be used to evaluate the performance and
financial status of the business
Accounting information Info that is intended to be useful in making decisions about the future
The balance sheet, the income What are the three primary financial statements?
statement, and the statement of
cashflows
Who is financial accounting information primarily prepared for and us
External Users
by?
Managerial Accounting the name given to accounting systems designed for internal users
Balance Sheet Reports a company's assets, liabilities, and owners' equity
Income Statement reports the amount of net income earned by a company during a per
,Net income the excess of a company's revenues over its expenses
reports the amount of cash collected and paid out by a company in t
statement of cash flows
following three types of activities: operating, investing, and financing
FASB Which private body establishes accounting rules in the U.S.?
Financial Accounting Standards a private body established and supported by the joint efforts of the U
Board (FASB) business community, financial analysts, and practicing accountants
the organization that regulates U.S. stock exchanges and seeks to cre
The Securities and Exchange
fair information environment in which investors can buy and sell stock
Commission (SEC)
without fear that companies are hiding or manipulating financial data
American Institute of Certified Public the professional organization of certified public accountants (CPAs) in
Accountants (AICPA) United States
the organization that inspects the audit practices of registered audit f
Public Company Accounting and has statutory authority to investigate questionable audit practices
Oversight Board (PCAOB) to impose sanctions such as barring an audit firm from auditing SEC-
registered companies
, Gov't agency that establishes rules to define exactly when income sho
be taxed. It has no role in setting financial accounting rules; and a
Internal Revenue Service (IRS)
company's financial statements are not used in determining how much
the company must pay
Organization that was formed to develop a common set of worldwide
The International Accounting
accounting standards. Its standards are increasingly accepted worldw
Standards Board (IASB)
but FASB rules are still the standard in the United States.
1. Rapid Advancements in the IT field Which 3 factors have combined to make right now a time of significan
2. the international integration of change in accounting?
worldwide business
3. Increased scrutiny associated with
large corporate accounting scandals
A wave of accounting scandals starting in 2001 resulted in this act, wh
Sarbanes-Oxley Act increases U.S. federal government scrutiny of the production of financ
statements.
reports a company's financial position at a specified point in time and
Balance Sheet the company's resources (assets), obligations (liabilities), and net
ownership interest (owners' equity).
, probable future economic benefits obtained or controlled by a comp
Assets
as a result of past transactions or events
probable future sacrifices of economic benefits arising from present
Liabilities obligations of a company to transfer assets or provide services in the
future as a result of past transactions or events
the residual interest in the assets of a company that remains after
Owners' equity
deducting its liabilities
Assets = Liabilities + Owners' Equity What is the accounting equation?
By order of liquidity In what order are assets typically listed on the balance sheet?
Current and Long-term Liabilities are divided into which 2 categories on the balance sheet?
states that the financial results of an What is the entity concept?
economic entity should be reported
separately from the financial results
of other entities, even though all
those entities may be controlled by
the same person
(revenues-expense= net income) Equation to calculate net income
