Introduction to Accounting and Financial Reporting

Flashcards covering key vocabulary and definitions related to accounting and financial reporting concepts.

Accounting

The process of identifying, measuring, and communicating financial information to help users make informed decisions.

Financial Accounting

Branch of accounting that provides information to external stakeholders.

Managerial Accounting

Branch of accounting that provides information for internal stakeholders, such as budgeting and monitoring.

Tax Accounting

Branch of accounting focusing on compliance with tax regulations and reporting to governments.

Balance Sheet

A financial statement that presents a snapshot of a company's assets, liabilities, and equity at a specific point in time.

Income Statement

A financial statement reporting the economic performance of a company over a period of time, detailing revenues and expenses.

Statement of Stockholders' Equity

A financial statement showing the changes in equity from transactions with investors over a period.

Statement of Cash Flows

A financial statement that reports the sources and uses of cash over a period, categorized into operating, investing, and financing activities.

Assets

Resources owned by an entity that provide probable future benefits.

Liabilities

Obligations or debts that the company owes to outside parties.

Stockholders' Equity

The owners' residual interest in the assets of the company after deducting liabilities.

Fiscal Year

A one-year period that companies use for financial reporting and budgeting, which may not coincide with the calendar year.

Accrual Accounting

An accounting method that recognizes revenues and expenses when they occur, regardless of cash flow.

Dividends

Payments made to shareholders from a company's earnings.

Current Assets

Assets expected to be used or converted into cash within one year.

Non-Current Assets

Assets that are expected to be held or used for longer than one year.

Current Liabilities

Obligations or debts expected to be settled within one year.

Non-Current Liabilities

Obligations that are due after more than one year.

Generally Accepted Accounting Principles (GAAP)

A set of rules and standards used in the United States for financial reporting.

International Financial Reporting Standards (IFRS)

Accounting standards adopted internationally to maintain consistency in accounting practices.