Accounting Flashcards

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Accounting Flashcards
2010-08-14 02:05:25
College Accounting

Ch. 1 Definitions
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  1. Accountant
    Designs the accounting information system and focuses on analyzing and interpreting information.
  2. Accounting
    A system of gathering financial information about a business and reporting this information to users.
  3. Accounting Clerk
    Records sorts and files accounting information.
  4. Accounting information systems
    Accountants in this area design and implement manual and computerized accounting systems.
  5. Analyzing
    Looking at events that have taken place and thinking about how they affect the business.
  6. Auditing
    Reviewing and testing to be certain that proper accounting policies and practices have been followed.
  7. Bookkeeper
    Generally supervises the work of accounting clerks, helps with daily accounting work, and summarizes accounting information.
  8. Budgeting
    The process in which accountants help managers develop a financial plan.
  9. Certified Internal Auditor
    An internal auditor who has achieved professional recognition by passing the uniform examination offered by the Institute of Internal Auditors.
  10. Certified Management Accountant
    An accountant who has passed an examination offered by the American Institute of Certified Public Accountants.
  11. Certified Public Accountant
    A public accountant who has met certain educational and experience requirements and has passed an examination prepared by the American Institute of Certified Public Accountants.
  12. Classifying
    Sorting and grouping similar items together rather than merely keeping a simple, diary-like record of numerous events.
  13. Controller
    The accountant who oversees the entire accounting process and is the principal accounting officer of a company.
  14. Corporation
    A type of ownership structure in which stockholders own the business. The owner's risk is usually limited to their initial investment, and they usually have very little influence on the business decisions.
  15. Cost Accounting
    Determining the cost of producing specific products or providing services and analyzing for cost effectiveness.
  16. Discussion Memorandum
    The first document issues by FASB when developing an accounting standard. This document identifies the pros and cons of various accounting treatments for an event.
  17. 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.
  18. Financial Accounting
    Includes preparing various reports and financial statements and analyzing operating, investing, and financing decisions.
  19. Generally Accepted Accounting Principles (GAAP)
    procedures and guidelines developed by the Financial Accounting Standards Board to be followed in the accounting and reporting process.
  20. 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.
  21. Interpreting
    Deciding the meaning and importance of the information in various reports.
  22. Management advisory services
    Providing advice to businesses on a wide variety of managerial issues.
  23. Manufacturing Business
    A business that makes a product to sell.
  24. Merchandising Business
    A business that buys products to sell.
  25. Para-accountant
    A paraprofessional who provides many accounting, auditing, or tax services under the direct supervision of an accountant.
  26. Partnership
    A type of ownership structure in which more than one person owns the business.
  27. Public Hearing
    Following the issuance of a discussion memorandum, FASB often holds public hearings to gather opinions on the accounting issue.
  28. Recording
    Entering financial information about events affecting the company into the accounting system.
  29. Reporting
    Telling the results of the financial information.
  30. Service business
    A business that provides a service.
  31. Sole proprietorship
    A type of ownership structure in which one person owns the business.
  32. Statement of Financial Accounting Standards
    A standard issued by the Financial Accounting Standards Board. These standards must be followed when preparing financial statements.
  33. Summarizing
    bringing the various items of information together to determine a result.
  34. Tax Accounting
    Focusing on tax planning, preparing tax returns, and dealing with the Internal Revenue Service and other governmental agencies. (Taxation).