Accounting 2

Key Terms

1.     ______________ The personnel, procedures, devices, and records used by an organization to develop accounting information and communicate that information to decision makers.

2.     ______________ An investigation of financial statements designed to determine their fairness in relation to generally accepted accounting principles.

3.     ______________ A position statement that shows where the company stands in financial terms at a specific date. (Also called the statement of financial position.)

4.     ______________ The clerical dimension of accounting that includes recording the routine transactions and day‑to‑day record keeping of an enterprise.

5.     ______________ The likelihood that an enterprise will be able to provide an investor with both a return on the investor’s investment and the return of that investment.

6.     ______________ An accountant who is licensed by a state after meeting rigorous education, experience, and examination requirements.

7.     ______________ Determining the cost of certain business activities and interpreting cost information.

8.     ______________ Individuals and other enterprises that have a financial interest in the reporting enterprise but that are not involved in the day‑to‑day operations of that enterprise (e.g., owners, creditors, labor unions, suppliers, customers).

9.     ______________ Providing information about the financial resources, obligations, and activities of an economic entity that is intended for use primarily by external decision makers – investors and creditors.

10.  ______________ A plan of financial operations for some future period.

11.  ______________ Principles that provide the framework for determining what information is to be included in financial statements and how that information is to be presented.

12.  ______________ An activity statement that shows details and results of the company’s profit‑related activities for a period of time.

13.  ______________ The qualities of complete, unbroken, unimpaired, sound, honest, and sincere.

14.  ______________ The study of internal control structure and evaluation of the efficiency of many different aspects of the enterprise’s operations.

15.  ______________ Measures used by an organization to guard against errors, waste, and fraud; to assure the reliability of accounting information; to promote compliance with management policies; and to evaluate the level of performance of all divisions of the company.

16.  ______________ Individuals who use accounting information from within an organization (for example, board of directors, chief financial officer, plant managers, store managers).

17.  ______________ Providing information that is intended primarily for use by internal management in decision making required to run the business.

18.  ______________The repayment to an investor of the amount originally invested in another enterprise.

19.  ______________ The payment of an amount (interest, dividends) for using another’s money.

20.  ______________ An activity statement that shows the details of the company’s activities involving cash during a period of time.

21.  ______________ Also called the balance sheet.

22. ______________ Preparation of income tax returns and anticipating the tax effects of business transactions and structuring them in such a way as to minimize the income tax burden.

Tax accounting  

Financial forecast

Financial accounting 

Statement of cash flows

Integrity

Cost accounting

Management accounting

Generally Accepted Accounting Principles (GAAP)

Internal auditing

Cash flow prospects 

Certified Public Accountant

bookkeeping

Balance sheet

Return on investment

Audit

Internal control structure

income statement

accounting systems

Internal users

External users

return of investment

statement of financial position