Term
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Definition
| A comprehensive system for collecting, analyzing, and communicating financial information. |
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Term
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Definition
| Recording accounting transactions. |
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Term
| Accounting Information System (AIS) |
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Definition
| An organized procedure for identifying, measuring, recording, and retaining financial information so that it can be used in accounting statements and management reports. |
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Term
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Definition
| The individual who manages all the firm's accounting activities. |
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Term
| Financial Accounting System |
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Definition
| The process whereby interested groups are kept informed about the financial condition of a firm. |
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Term
| Managerial (management) Accounting |
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Definition
| Internal procedures that alert managers to problems and aid them in planning and decision making. |
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Term
| Chartered Accountant (CA) |
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Definition
| An individual who has met certain experience and education requirements and has passed a licensing examination; acts as an outside accountant for other firms. |
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Term
| Certified General Accountant (CGA) |
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Definition
| An individual who has completed an education program and passed a national exam; works in private industry or CGA firm. |
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Term
| Certified Management Accountant (CMA) |
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Definition
| An individual who has completed a university degree, passed a national examination, and completed a strategic leadership program; works in industry ans focuses on internal management. accounting. |
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Term
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Definition
| An accountant's examination of a company's financial records to determine if it used proper procedures to prepare its financial reports. |
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Term
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Definition
| An accountant who tracks down hidden funds in business firms, usually as a part of a criminal investigation. |
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Term
| Generally Accepted Accounting Principles (GAAP) |
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Definition
| Standard rules and methods used by accountants in preparing financial reports. |
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Term
| Management Consulting Services |
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Definition
| Specialized accounting services to help managers resolve a variety of problems in finance, production scheduling, and other areas. |
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Term
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Definition
| An accountant hired as a salaried employee to deal with a company's day to day accounting needs. |
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Term
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Definition
| Anything of economic value owned by a firm or individual. |
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Term
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Definition
| Any debt owed by a firm or individual to others. |
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Term
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Definition
| Any positive difference between a firm's assets and it's liabilities; what would remain for a firm's owners if the company were liquidated, all its assets were sold, and its debts were paid. |
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Term
| Double-entry accounting system |
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Definition
| A bookkeeping system developed in the 15th century and still in use, that requires every transaction to be entered in two ways-how it affects liabilities and owner's equity-so that the accounting equation is always in balance. |
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Term
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Definition
| Any of several types of broad reports regarding a company's financial status; most often used in reference to balance sheets, income statements, and/or statements of cash flows. |
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Term
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Definition
| Cash and other assets that can be converted into cash within a year. |
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Term
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Definition
| The ease and speed into which an asset can be converted to cash; cash is said to be perfectly liquid. |
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Term
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Definition
| Amounts due to the firm from customers who have purchased goods or services on credit; a form of current asset. |
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Term
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Definition
| The cost of merchandise that has been acquired for sale to customers but is still on hand. |
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Term
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Definition
| Includes supplies on hand ans rent paid for the period to come. |
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Term
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Definition
| Assets that have been long-term use or value to the firm such as land, buildings and machinery. |
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Term
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Definition
| Distributing the cost of a major asset over the years in which it produces revenues; calculated by each year subtracting the asset's original value divided by the number of years in the productive life. |
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Term
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Definition
| Non-physical assets such as patents, trademarks, copyrights, and franchise fees that have economic value but whose precise value is difficult to calculate. |
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Term
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Definition
| The amount paid for an existing business beyond the value of its other assets. |
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Term
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Definition
| Any debts owed by the firm that must be paid within one year. |
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Term
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Definition
| Amounts due from the firm to its suppliers for goods and/or services purchased on credit; a form of current liability. |
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Term
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Definition
| Any debts owed by the firm that are not due for at least one year. |
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Term
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Definition
| Any additional money invested in the firm by the owners. |
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Term
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Definition
| A company's net profits less any dividend payments to shareholders. |
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Term
| Income (Profit-and-Loss)Statement |
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Definition
| A type of financial statement that describes a firm's revenues and expenses and indicates whether the firm has earned a profit or suffered a loss during a given period. |
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Term
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Definition
| Any monies received by a firm as a result of selling a good or service or from other sources such as interest, rent, and licensing fees. |
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Term
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Definition
| Any expenses directly involved in producing or selling a good or service during a given time period. |
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Term
| Gross Profits (Gross Margin) |
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Definition
| A firm's revenues (gross sales) less its cost of goods sold. |
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Term
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Definition
| Costs incurred by a firm other than those included in cost of goods sold. |
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Term
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Definition
| Compares the gross profit from business operations against operating expenses. |
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Term
| Net Income (Net profit or net earnings) |
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Definition
| A firm's gross profit less its operating expenses and income taxes. |
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Term
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Definition
| A financial statement that described a firm's generation and use of cash during a given period. |
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Term
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Definition
| A detailed financial plan for estimated receipts and expenditures for a period of time in the future, usually one year. |
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