A
Raw and unorganized facts that are required to be processed to make it meaningful
What is data?
A set of data that is processed in a meaningful way to make it useful
What is information?
Computerized program used to support determinations, judgments and courses of action in an organization or business
What is a decision support system (DSS)?
A computer system consisting of hardware and software that serves as the backbone of an organization's operations
What is a management information system (MIS)?
The process of recording financial transactions pertaining to a business
What is accounting?
A common set of accounting principles, standards and procedures issued by the Financial Accounting Standards Board
What are generally accepted accounting principles (GAAPs)?
A branch of accounting that is concerned with the identification, measurement, analysis, and interpretation of accounting information so that it can be used to help managers to make necessary decisions to efficiently manage a company’s operations.
What is managerial accounting?
The process of preparing financial statements that companies’ use to show their financial performance and position to people outside the company, Including investors, creditors, suppliers, and customers.
What is financial accounting?
Resources or things of value that are owned by a company
What are assets?
Something a person or company owes, usually a sum of money.
What are liabilities?
The owners' right to the assets of the business
What is owners' equity?
Assets = (Liabilities + Owners' Equity)
What is the accounting equation?
Financial statement that reports a company's assets, liabilities and owners' equity at a specific point in time
What is a balance sheet?
A measurement of the ease with which assets can be converted to cash
What is liquidity?
Assets that are convertible to cash in less than a year
Assets purchased for long-term use that are not likely to be converted quickly into cash
What are fixed assets?
This statement is also known as the profit and loss statement or the statement of earnings
What is the income statement?
The grand total of all sales transactions reported in a period without any deductions included within the figure
What is gross sales?
The sum of a company's gross sales minus its returns, allowances, and discounts
What are net sales?
The direct costs of producing the goods sold by a company, including the cost of the materials and labor used to create the good
What is the cost of goods sold?
This statement reports the cash generated and used during a specific time interval
What is the statement of cash flows?
Relationships determined from a company's financial information and used for comparison purposes
What is a financial ratio?
This ratio is calculated by dividing a business's operating profit by its net revenue from sales
What is return on sales?
Current assets divided by current liabilities
What is the current ratio?
A ratio showing how many times a year a company has sold and replaced inventory during a given period
What is inventory turnover?