Term
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Definition
| comprehensive system for collecting, analyzing, and communicating financial information |
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Term
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Definition
| recording of accounting transactions |
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Term
| Accounting Information System (AIS) |
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Definition
| organized procedure for identifying, measuring, recording, and retaining financial information for use in accounting statements and management reports |
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Term
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Definition
| person who manages all of a firm's accounting activities (chief accounting officer) |
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Term
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Definition
| field of accounting concerned with external users of a company's financial information |
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Term
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Definition
| field of accounting concerned with external users of a company's financial information |
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| Managerial (Management) Accounting |
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Definition
| field of accounting that serves internal users of a company's financial information |
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Term
| Certified Public Accountant (CPA) |
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Definition
| accountant licensed by the state and offering services to the public |
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Term
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Definition
| systematic examination of a company's accounting system to determine whether its financial reports reliably represent its operations |
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Term
| Generally Accepted Accounting Principles (GAAP) |
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Definition
| accounting guidelines that govern the content and form of financial reports |
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Term
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Definition
| assistance provided by CPAs for tax preparation and tax planning |
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Term
| Management Advisory Services |
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Definition
| assistance provided by CPA firms in areas such as financial planning, information systems design, and other areas of concern for client firms |
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Term
| Core Competencies for Accounting |
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Definition
| the combination of skills, technology, and knowledge that will be necessary for the future CPA |
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Term
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Definition
| salaried accountant hired by a business to carry out its day-to-day financial activities |
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Term
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Definition
| private accountant who provides financial services to support managers in various business activities within a firm |
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Term
| Certified Management Accountant (CMA) |
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Definition
| professional designation awarded by the Institute of Management Accountants in recognition of management accounting qualifications |
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Term
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Definition
| the practice of accounting for legal purposes |
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Term
| Certified Fraud Examiner (CFE) |
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Definition
| professional designation administered by the Association of Certified Fraud Examiners in recognition of qualifications for a specialty area within forensic accounting |
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Term
| Sarbanes-Oxley Act of 2002 (SARBOX) |
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Definition
| enactment of federal regulations to restore public trust in accounting practices by imposing new requirements on financial activities in publicly traded corporations |
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Term
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Definition
Assets = Liabilities + Owners' Equity (Ass=L+OE);
used by accountants to balance data for the firm's financial transactions at various points in the year |
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Term
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Definition
| any economic resource expected to benefit a firm or an individual who owns it |
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Term
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Definition
| debt owned by a firm to an outside organization or individual |
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Term
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Definition
| amount of money that owners would receive if they sold all of a firm's assets and paid all of its liabilities |
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Term
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Definition
| any of several types of reports summarizing a company's financial status to stakeholders and to aid in managerial decision making |
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Term
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Definition
| financial statement that supplies detailed information about a firm's assets, liabilities, and owners' equity |
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Term
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Definition
| aset that can or will be converted into cash within a year |
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Term
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Definition
| ease with which an asset can be converted into cash |
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Term
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Definition
| asset with long-term use or value, such as land, buildings, and equipment |
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Term
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Definition
| accounting method for distributing the cost of an asset over its useful life |
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Term
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Definition
| nonphysical asset, such as a patent or trademark, that has economic value in the form of expected benefit |
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Term
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Definition
| amount paid for an existing business above the value of its other assets |
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Term
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Definition
| debt that must be paid within one year |
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Term
| Accounts Payable (Payables) |
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Definition
| current liability consisting of bills owed to suppliers, plus wages and taxes due within the coming year |
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Term
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Definition
| debt that is not due for at least one year |
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Term
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Definition
| money that is invested in a company by its owners |
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Term
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Definition
| earnings retained by a firm for its use rather than paid out as dividends |
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Term
| Income Statement (Profit-and-Loss Statement) |
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Definition
| financial statement listing a firm's annual revenues and expenses so that a bottom line shows annual profit or loss |
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Term
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Definition
| funds that flow into a business from the sale of goods or services |
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Term
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Definition
| costs that a company incurs to obtain revenues from other companies |
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Term
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Definition
| costs of obtaining materials for making the products sold by a firm during the year |
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Term
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Definition
| preliminary, quick-to-calculate profit figure calculated from the firm's revenues minus its costs of revenues (the direct costs of getting the revenues) |
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Term
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Definition
| costs, other than the cost of revenues, incurred in producing a good or service |
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Term
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Definition
| gross profit minus operating expenses |
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Term
| Net Income (Net Profit, New Earnings) |
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Definition
| gross profit minus operating expenses and income taxes |
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Term
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Definition
| financial statement describing a firm's yearly cash receipts and cash payments |
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Term
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Definition
| detailed statement of estimated receipts and expenditures for a future period of time |
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Term
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Definition
| formal recording and reporting of revenues at the appropriate time |
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Term
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Definition
| guideline that financial statements should not include just numbers but should also furnish management's interpretations and explanations of those numbers |
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Term
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Definition
| financial ratio, either short- or long-term, for estimating the borrower's ability to repay debt |
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Term
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Definition
| financial ratio of for measuring a firm's potential earnings |
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Term
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Definition
| financial ratio for evaluating management's efficiency in using a firm's assets |
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Term
| Short-Term Solvency Ratio |
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Definition
| financial ratio for measuring a company's ability to pay immediate debts |
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Term
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Definition
| financial ratio for measuring a company's ability to pay current debts out of current assets |
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Term
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Definition
| company's total liabilities |
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Term
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Definition
| ability to finance an investment through borrowed funds |
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Term
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Definition
| profitability ratio measuring the net profit that the company earns for each share of outstanding stock |
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Term
| Code of Professional Conduct |
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Definition
| code of ethics for CPAs as maintained and enforce by the AICPA |
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