Vocabulary

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memaryme12
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21393
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Vocabulary
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2010-08-09 16:09:55
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Accounting Glossary
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Accounting
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  1. Account********
    a device for recording the changes (increases or decreases) in the fundamental accounting elements
  2. Accountant
    one who is concered with the design of the system of records, the preparation of reports based upon the recorded data, and the interpreation of the reports
  3. Accounting*******
    a language of business employed to communicate financial information based upon analyzing, recording, classification, summariztion, reporting and interpretation of financial data
  4. Accounting equation
    Assets equal Liabilities plus Owner's Equity
  5. Accounts payable*********
    an unwritten promise by a customer to pay creditors for property, such as merchandise, supplies or equipment purchased on credit or for servics received on credit
  6. Accounts receivable*******
    an unwritten promise by a customer to pay, at a later date, for goods sold or service rendered
  7. Analyzing******
    determining the fundamental significance of business transactions so that financial information may be properly processed
  8. Assets*******
    property of monetary value ownee by a business
  9. Auditing (verifying)
    a complete testing and checking of all financial records of a business to be certain that acceptable policies and practices have been followed
  10. Balance sheet(statement of financial position; statement of financial condition)
    a formal financial statement illustrating the assets, liabilities and owner's equity of a business as of a specific date
  11. Balance sheet common-size statements/percentage method
    express the major items in the balance sheet as a percent of the total assets ane compare with previous fiscal periods
  12. Balance sheet comparative forms
    record the balance sheet data for two or more comparable periods on the same form so that the information can be readily compared
  13. Bookkeeper (information processor0
    one who is involved in the process of recording financial information in a prescribed manner
  14. budget
    a formal written statement, which may be based upon adjusted historical data, of managmeent's plans for the future expressed in financial terms
  15. Capital
    factors of production used to create goods or services that are not themselves significantly consumed (though they may depreciate) in the production process. Capital goods may be acquired with money or financial capital
  16. Certified Public Accountant/CPA
    an individual possessing a college education, having practical experience in accounting and who has passed a comprehensive state examination in order to be certifid to practice public accounting in the state
  17. Classiying*********
    the sorting of the many business transactions in an orderly and systematic manner; sorting or grouping like things together
  18. Drawing account (owner withdrawals)********
    a separate owner's equity account in which withdrawls of cash or other assets by the owner for personal use are recorded
  19. Expense********
    a decrease in assets, other than withdrawls by the owner, which results from efforts to produce revenues
  20. fiscal year********
    any consecutive 12 month period
  21. Income statement(profit and loss statement; operating statement; statement of operation)
    a formal financial statement which presents the income, expenses and resulting net profit or net loss for a given period
  22. interpreting**********
    explaning the significant events or developments that occur, usually taking the form of analysis and comparisons
  23. liabilities*******
    any debts that a business owns
  24. liquidity analysis
    measures the ability of the firm to meet its current obligations
  25. mechandise
    the commodities or goods that are bought and sold in business
  26. net income (net profit)*********
    the difference between gross profit and expenses when gross profit is larger
  27. net loss**********
    the difference between gross profit and expenses when expenses are larger
  28. net working capital
    the excess of current assets over current liablities
  29. Notes payable****
    a written promise to pay a creditor a certain amount in the future
  30. operating expenses (overhead)
    expenses incurred in the normal operation of a business
  31. owner's equity (net worth; capital; proprietorship)************8
    the amount by which the total assets exceed the total liabilities of a business; an owner's financial intrest in a business
  32. recording (data entry)***********
    the commiting of a business transaction and the events surrounding such into writing
  33. statement of owner's equity (statement of net worth)
    a formal financial statement which summarizes all of the changes in owner's equity during a specified period or time
  34. summarizing*****
    bringing accounting data together in a way that will further enhance it's usefulness, usually by means of reports and statements; brinking together various items of information to determin or explain a result
  35. Accounting clerk
    records, sorts and files accounting information
  36. Accounting information systems
    accountants in this area design and implement manual and computerized accounting systems
  37. budgeting
    the process in which accountants help managers develope a financial plan
  38. Certified Internal Auditor
    an internal auditor who has achieved professional recognition by passing the uniform esamination offered by the inwtitute of Internal Auditors
  39. Certified Management Accountant
    an accountant who passed an examination offered by the Institute of Management Accountants
  40. controller
    the accountant who oversees the entire accounting process and is the principal accounting officer of a company
  41. corporation
    a type of ownership structure in which stockholders own the business. The owners' risk is usually limited to their intitial investment, and they usually have very little influence on the business decisions.
  42. cost accounting
    determining the cost of producing specific products or providing services and analysing for cost effectiveness
  43. discusion memorandum
    the first document issued by FASB when developing an accounting standard. This document indentifies the pros and cons of various accounting treatments for an event.
  44. exposure draft
    this document explains the rules that FASB believes firms should follow in accounting for a particular event. Based on the responses to the exposure draft, the Board will decide if any changes are necessary before issuing a final standard
  45. financial accounting
    includes preparing various reports and financial statements and analyzing operating, investing and financing decisions
  46. general accepted accounting principles (GAAP)
    Procedures and guidlines developed by the Financial Accounting Standards Board to be followed in the accounting and reporting process
  47. internal auditing
    reviewing the operating and accounting control procedures adopted by management to make sure the controls are adequate and being followed; assuring that accurate and timely information is provided.
  48. interpreting*****
    deciding the meaning and importance of the information in various reports
  49. management advisory services
    providing advice to businesses on a wide variety of managerial issues
  50. manufacturing business
    a business that makes a product to sell
  51. merchandising business
    a business that buys products to sell
  52. para-accountant
    a paraprofessional who provides many accounting, auditing, or tax services under the direct supervision of an accountant
  53. partnership
    a type of ownership structure in which more than one person owns the business
  54. public hearing
    following the issuance of a discussion memorandum, public meetings are often held by FASB to gather opionions on the accounting issue
  55. reporting
    telling the results of the financial information
  56. Sarbanes-Oxley Act
    An act passed by Congress to help improve reporting practices of public companies
  57. service business
    a business that provides a service
  58. sole proprietorship****
    a type of ownership structure in which one person owns the business
  59. statement of financial accounting standards
    a standard issued by the Financial Accounting Standards Board. These standards must be followed when preparing financial statements
  60. tax accounting
    services focused on tax planning, preparing tax returns, and dealing with the Internal Revenue Service and other governmental agencies
  61. taxation
    • a. The act or practice of imposing taxes.
    • b. The fact of being taxed.
    • 2. An assessed amount of tax.
    • 3. Revenue gained from taxes.
  62. account title****
    provides a description of the particular type of asset, liability, owner's equity, revenue, or expense
  63. Accounting period concept
    The concept that income determination can be made on a periodic basis
  64. business entity
    an individual, association, or organization that engages in economic activities and controls specific economic resources
  65. business equity concept
    the concept that nonbusiness assets and liabilities are not included in the business entity's accounting records
  66. business transactions
    an economic event that has a direct impact on the business
  67. input
    business transactions provide the necessary input for the accounting information system
  68. liquidity
    a measure of the ease with which an asset will be converted to cash
  69. net worth
    another term for owner's equity, the amount by which the business asserts exceed the business liabilities
  70. operating statement
    another name for the income statement, which reports the profitability of business operations for a specific period of time.
  71. output
    the financial statements are the output of the accounting information system
  72. processing
    recognizing the effect of transactions on the assets, liabilities, owner's equity, revenues, and expenses of a business
  73. profit and loss statements
    another name for the income statement, which reports the profiability of business operations for a specific period to time
  74. revenues*****
    the amount a busines charges customers for products sold or services performed
  75. statement of financial condition
    another name for the balance sheet, which reports assets, liabilities, and owner's equity on a specific date
  76. statement of financial position
    another name for the balance sheet, which reports assets, liabilities and owner's equity on a specific date
  77. statement of owner's equity
    reports beginning capital plus net income less withdrawls to compute ending capital
  78. Basic Accounting Equation*****
    Be able to do transactions & identify the accounts that are affected & whether they increase or decrease
  79. Disbursement****
    Money paid out; expenditures
  80. Phase in accounting process****
    analyzing, recording, classifying, summaraizing, reporting, interpreting
  81. Transactions
    is an economic event that has a direct impact on the business

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