Chapter 10: Accounting

Flashcards covering key vocabulary and concepts from Chapter 10: Accounting.

Accounting

The art and science of recording, classifying, and summarizing financial transactions, and interpreting the results.

Benefits of Accounting

Supports decision-making, evaluates business performance, helps obtain financial support, and supports monitoring.

Accounting System

Formal method of recording and summarizing business activities and transactions in a manner, to shows, revenues, expenses, assets, and liabilities.

Components of Accounting System

Revenues, Expenses, Assets, Liabilities, and Equity.

Expenses

Costs of doing business.

Revenues/Income

Income from sales of goods or services.

Liabilities

Items/money owed to others.

Accounting Framework

A set of standards for financial statements.

Clean Audit Opinion

Financial statements are fairly presented.

GAAP

Generally Accepted Accounting Principles.

IFRS

International Financial Reporting Standards.

Financial Accounting

Collecting and summarizing financial information about a company.

CPA's

Certified Public Accountants.

Forensic Accounting

Monitoring and reviewing of financial information.