Financial Accounting - McGraw Hill; Ch.1 Flashcards
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| 8844421064 | Accounting | A system of maintaining records of a company's operations and communicating that information to decision makers. | 0 | |
| 8844898860 | Accounting Equation | Equation that shows a company's resources (assets) equal creditors' and owners' claims to those resources (liabilities and stockholders' equity). | 1 | |
| 8844909084 | Assets | Resources of a company | 2 | |
| 8844912409 | Auditors | Trained individuals hired by a company as a n independent party to express a professional opinion of the conformity of that company's financial statements with GAAP. | 3 | |
| 8844919614 | Balance Sheet | A financial statement that presents the financial position of the company on a particular date. | 4 | |
| 8844929973 | Comparability | The ability of users to see similarities and differences between two different business activities. | 5 | |
| 8844937077 | Consistency | The use of similar accounting procedures either over time for the same company, or across companies at the same point in time. | 6 | |
| 8844944433 | Corporation | An entity that is legally separate from its owners. | 7 | |
| 8844950834 | Cost Constraint | Financial accounting information is provided only when the benefits of doing so exceed the costs. | 8 | |
| 8844958261 | Decision Usefulness | The ability of the information to useful in decision making. | 9 | |
| 8844962203 | Dividends | Cash payments to stockholders | 10 | |
| 8844964377 | Economic Entity Assumption | All economic events with a particular economic entity can be identified. | 11 | |
| 8844970879 | Ethics | A code or moral system that provides criteria for evaluating right and wrong behavior. | 12 | |
| 8844975309 | Expenses | Costs fo providing products and services. | 13 | |
| 8844980334 | Faithful Representation | Accounting information that is complete, neutral, and free from error. | 14 | |
| 8844983424 | Financial Accounting | Measurement of business activities of a company and communication of those measurements to external parties for decision-making purposes. | 15 | |
| 8844997221 | Financial Accounting Standards Board (FASB) | An independent, private body that has primary responsibility for the establishment of GAAP in the United States. | 16 | |
| 8845070921 | Financial Statements | Periodic reports published by the company for the purpose of providing information to external users. | 17 | |
| 8845360756 | Generally Accepted Accounting Principles (GAAP) | The rules of financial accounting. | 18 | |
| 8845387567 | Income Statement | A financial statement that reports the company's revenues and expenses over an interval of time. | 19 | |
| 8845395706 | International Accounting Standards Board (IASB) | An international accounting standard-setting body responsible for the convergence of accounting standards worldwide. | 20 | |
| 8845410998 | International Financial Reporting Standards (IFRS) | The standards being developed and promoted by the INternational Accounting Standards Board. | 21 | |
| 8845414206 | Liabilities | Amounts owed to creditors. | 22 | |
| 8845416698 | Monetary Unit Assumption | A unit or scale of measurement can be used to measure financial statement elements. | 23 | |
| 8845421214 | Net Income | Difference between revenues and expenses. | 24 | |
| 8845423395 | Partnership | Business owned by two or more persons. | 25 | |
| 8845427231 | Periodicity Assumptions | The economic life of an enterprise (presumed to be indefinite) can be divided into artificial time periods for financial reporting. | 26 | |
| 8845462230 | Relevance | Accounting information that possesses confirmatory value and/or predictive value, and that is material. | 27 | |
| 8845501447 | Retained Earnings | Cumulative amount of net income earned over the life of the company that has been kept (retained) in the business rather than distributed to stockholders as dividends (not retained). | 28 | |
| 8845520922 | Revenues | Amounts recorded when the company sells products or services to customers. | 29 | |
| 8845531349 | Sarbanes-Oxley Act (SOX) | Formally titled the Public Company Accounting Reform and Investors Protection Act of 2002, this act provides regulations of auditors and the types of services they furnish to clients, increases accountability of corporate executives, addresses conflicts of interest for securities analysts, and provides for stiff criminal penalties for violators. | 30 | |
| 8845551405 | Sole Proprietership | A business owned by one person. | 31 | |
| 8845557531 | Statement of Cash Flows | A financial statement that measures activities involving cash receipts and cash payments over an interval of time. | 32 | |
| 8845582395 | Statement of Stockholders' Equity | A financial statement that summarizes the changes in stockholders', or owners', claims to resources., which equal the difference between total assets and total liabilities. | 33 | |
| 8845600422 | Timeliness | Information being available to users early enough to allow them to use it in the decision process. | 34 | |
| 8845606391 | Understandability | Users must understand the information within the context of the decision they are making. | 35 | |
| 8845614270 | Verifiability | A consensus among different measurers. | 36 |