GAAP
A set of rules and practices, having substantial authoritative support, that the accounting profession recognizes as a general guide for financial reporting purposes.
Generally Acceptable Accounting Practice
A financial statement that presents the revenues and expenses and resulting net income or net loss of a company for a specific period of time.
What is the income statement?
What are the basic principles that govern behavior?
What is ethics?
The information system that identifies, records, and communicates the economic events of an organization to interested users.
What is accounting?
A category on the balance sheet that includes cash, accounts receivable, equipment, and inventory.
What are assets?
The difference between revenue and expenses.
What is net income?
GAAP
What is generally acceptable accounting procedures?
This part of the statement of cash flow reports the buying and selling of corporate assets.
What are investing activities?
A category on the income statement that represents the write off of uncollectible receivables.
What is bad debt?
an estimate of income and expenses
What is budget?
A type of accounting that prepares and reports financial data to internal users
What is a managerial accounting?
A rise in the allowance for doubtful accounts will result in a drop to this item on the income statement.
What is net income?
This company is under fire for not providing enough privacy for its members
What is Facebook?
A financial summary with estimates as to when, where, and how much money will go in and out of a business
Cash Flow Statement
The owners' claim to assets.
What is stockkholder's equity?
This item on the income statement is considered a noncash expense that is directly tied to fixed assets such as equipment, vehicles, or buildings.
What is depreciation?
Maintaining honest and open communication
What is Transparency