Terms
is the comprehensive system for collecting, analyzing and communicating financial information
Accounting
Any economic resource expected to benefit the company or person who owns it.
Asset
method for distributing the cost of an asset over it's useful life
Depreciation
Organizational procedure for identifying , measuring, recording and retaining financial info
AIS (Accounting Information System)
Cost that a company incurs to obtain revenues from other companies
Cost of Revenues
person who manages all of a firm's accounting activities. (Chief Accounting Officer)
Controller
Debt owed to an outside person or individual
Liability
Debt that has to be paid within 12 months
Current Liability
Guidelines that govern the content and form of financial reports
(GAAP) Generally Accepted Accounting Principles
_____ is the cost of obtaining the material for making the products sold
cost of good sold
is an accountant licensed by the state and offering services to the public
CPA
Asset that will be converted to cash within the year.
Current asset
Asset with long term use or value
Fixed Asset
Federal regulations that apply to publicly traded companies
(SOX) Sarbanes Oxley Act of 2002
Preliminary, quick-to-calculate profit figure calculated from the firm's revenues minus its cost of revenues
Gross Profit
Systematic examination of a company's accounting system to determine that its financial reports reliably represent its operations.
Audit
Ease with which an asset can be converted into cash
Liquidity
is the current liability consisting of bills owed to suppliers plus wages and taxes due within the coming year
Accounts Payable (Payables)
Awarded by IMA based on management accounting qualifications
Certified Management Accountant
_____ is Gross Profit minus operating expenses
Operating Income
a balance sheet is a _____ that supplies detailed information about a firm's assets , liabilities, and owner's equity.
Financial Statement
Non Physical Asset like a patent
Intangible Asset
Income Statement is also known as a ________
Profit and Loss Statement or "P&L"
Board Responsible for developing a set of global accounting standards
(IASB) International Accounting Standards
_________the formal recording and reporting of revenues at the appropriate time
Revenue Recognition