Accounting in Action
Process of planning, recording, analyzing, and interpreting financial information
Accounting
Accounting Equation
A record that summarizes all the transactions pertaining to a single item in the accounting equation
Account
Financial reports that summarize the financial condition and operations of a business
Financial Statements
Licensed professional who has passed the formal exam and met additional state licensing requirements to practice
Accountant
Planned process designed to compile financial data and summarize the results in accounting records and reports.
Accounting System
Business that preforms an activity for a fee
Service Business
Sale for which payment will be received at a later date
Sale on Account
Accountants call any business activity that changes assets, liabilities, or owner's equity
Transaction
Analyzes financial data to help businesses make investment decisions and assess financial performance.
Financial Analyst
Report of what an individual owns, owes, and the difference between the two
Net Worth Statement
Standards and rules that accountants follow while recording and reporting financial activities
GAAP or Generally Accepted Accounting Principles
Amount owed used to operate a business
Expense
The name given to an account
Account Title
Provides advice to individuals or businesses on managing finances, including investments, retirement planning, and tax strategies.
Financial Planner
Use of ethics to make a business decision
Business Ethics
Formal written document that describes the nature of a business and how it will operate
Business Plan
Increase in equity from goods or services sold
Revenue
Account used to summarize the owner's equity in a business
Capital Account
Examines an organization's financial statements and records to ensure accuracy and compliance with accounting standards and regulations. There are two main types of auditors: internal & external
Auditors
The definition of differences between assets and liabilities
Equity
Business owned by one person
Proprietorship
Assets taken form the business for personal use (usually cash)
Withdrawals
A person or business to whom a liability is owed
Creditor
Oversees the financial operations of a company, including financial planning, risk management, and record-keeping.
Chief Financial Officer (CFO)