Cheat_Sheet - 3 basic accting activities financing...

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3 basic accting activities : financing, investring, and operating. Operating cycle : the avg. time it takes to purchase inventory, sell it on account, and college cash from customers Current Assets : Cash/resources companies expect to convert to cash within 1 year or operating cycle, whichever is longer. Stockholder's Equity: the stockhoolders claim on total assets Common Stock: term used to describe total amt. Paid in by stockholders for the shares they purchased. GAAP: Generally accepted accounting principles SEC: Securities and exchange commision FASB: Financial accounting standards board IASB: International accounting standards board. Four basic industry groups: Raw materials, manufacturing & construction, service, intellectual services Sarbanes-Oxley Act (SOX ): Regulations passed by Congress in '02 to try to reduce unethical corporate behavior. MD&A: Management discussion and analysis-ability to pay nearterm obligations and its result of operations. Cost Principle: an accting principle that states that companies should record as their cost Full Disclosure Principle: accts principle that dictates that companies disclose circumstances and events that make a difference to financial statement users. Going Concern Assumptin: the assumption that the enterprise will continue in operation for the foreseeable future.
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