Term
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Definition
| an information and measurement system that identifies, records and communicates relevant, reliable and comparable information about an organizaation. |
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| those who are not directly involved with running the company |
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| those directly involved in managing and operating an organization |
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Definition
| financial statements are based on actual cost incurred in business transation |
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Term
| revenue recognition principle |
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Definition
| revenue is recognized when earned |
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Term
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Definition
| accounting information reflects the assumption that the business will continue operation, not close or sell |
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Definition
| transactions are expressed in money units |
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| the life of a company can be divided into time periods that useful reports can be prepared for those periods |
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Definition
| business owned by one person that has unlimited liability |
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Definition
| a business owned by 2 or more people who are subject to unlimited liability |
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Term
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| Sarbanes Oxley - Law passed by Congress that requires the public companies to apply both accounting oversight and stronger internal controls |
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Definition
| resources a company owns or controls |
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Term
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Definition
| creditor's claims on assets |
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Term
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Definition
| owner's claim on assets (net assets or residual equity) |
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| sales of products or services to customers |
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| assets on an owner takes from the company for personal use |
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Definition
| cost of assets or services used to earn revenues |
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| Expanded accounting equation |
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Definition
| Assets = Liabilities+Owner's Equity-Owner's Withdrawal+ Revenues - Expenses |
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Term
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Definition
| describe a company's revenues and expenses along with the resulting net income or loss over a period of time |
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Term
| statment of owner's equity |
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Definition
| expalins changes in equity from net income or loss and from owner's investment and withdrawals over a period of time |
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Term
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Definition
| describes a company's financial position at a point in time |
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Definition
| identifies cash inflows (receipts) and cash outflows (payments) over a period of time |
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Term
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Definition
| Generally Accepted Accounting Principles concepts and rules that govern financial accounting |
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Term
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Definition
| Securities and Exchange Commission delegates authority to set Us GAAP to the FASB |
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Term
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Definition
| International Accounting Standards Board hopes to create harmony among accounting practices in different countries |
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Term
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Definition
| International Financial Reporting Standards that identify preferred accounting practices in the global economy. |
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Term
| revenue recognition principle |
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Definition
| revenue is recognized when earned. |
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Term
| full disclosure principle |
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Definition
| presribes reporting the details behind the financial statements that would impact user's decisions |
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Term
| expense recognition principle |
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Definition
| (also callled matching principle) prescribes that a company records expenses incurred to generate revenues it reported |
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Term
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Definition
| a business that is a seperate legal entity who owners are shareholders |
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