CH1 Stice Key Terms

Accounting
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Terms in this set (18)
Accounting
A system of providing "quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions".
Accounting System
Step 1: Bookkeeping (keep track of information)

Step 2: Analysis (organize and evaluate accounting information)
American Institute of Certified Public Accountants
AI-CPA. CPA labels guarantees that the person has received substantial accounting training.
Professional association of accountants
Balance Sheet
reports the resources of a company (the assets), the company's obligations (the liabilities), and the owner's equity, which represents how much money has been invested in the company by its owners.
Bookkeeping
is the preservation of a systematic, quantitative record of an activity.
CPA
an accountant who has passed certain examinations and met all other statutory and licensing requirements of a United States state to be certified by that state
Financial Accounting
is the name given to accounting information provided for and used by external users.
Financial Accounting Standards Board (FASB)
sets U.S. accounting standards. Based in Norwalk, CT. $34M operating budget.
Financial Statements
general purpose information provided by financial accounting:
Balance sheet, income statement, and statement of cash flows
GAAP
a collection of rules and procedures and conventions that define accepted accounting practice
Income Statementreports the amount of net income earned by a company during a period, with annual and quarterly income statements being the most common.IRSthe bureau of the Treasury Department responsible for tax collectionsInternational Accounting Standards Board (IASB)An accounting standard-setting body that issues standards adopted by many countries outside of the United StatesInternational Financial Reporting Standards (IFRS)similar to GAAP, set of accounting standards and interpretations developed by IASBManagerial Accountingthe INTERNAL use of accounting statements by managers in planning and directing the organization's activitiesPublic Company Accounting Oversight Board (PCAOB)Board of five full-time members established by the Sarbanes-Oxley Act to oversee the accounting and auditing profession. SEC appoints board members.SECcreated in response to crash in 1929. To regulate the U.S. Stock Exchanges. Charged to make sure investors are provided with full and fair financial information.Statement of Cash Flowsreports the amount of cash collected and paid out by a company in: Operating Investing Financing