AccountingStudyGuideTerms1_3.pdf - Accounting Financial...

Accounting
The information system that measures
business activities, processes the
information into reports, and
communicates the results to decision
makers.
Financial Accounting
The field of accounting that focuses on
providing information for external decision
makers.

Managerial Accounting
The field of accounting that focuses on
providing information for internal decision
makers.
Certified Management
Accountants (CMAs)
Certified professionals who specialize in
accounting and financial management
knowledge. They typically work for a single
company.

Certified Public Accountants
(CPAs)
Licensed professional accountants who
serve the general public.
Creditor
Any person or business to whom a
business owes money.

Corporation
A business organized under state law that
is a separate legal entity.
Economic Entity Assumption
An organization that stands apart as a
separate economic unit.

Financial Accounting Standards
Board (FASB)
The private organization that oversees the
creation and governance of accounting
standards in the United States.
Generally Accepted Accounting
Principles (GAAP)
Accounting guidelines, currently formulated
by the Financial Accounting Standards
Board (FASB); the main U.S. accounting
rule book.

Limited-Liability Company (LLC)
A company in which each member is only
liable for his or her own actions.
Partnership
A business with two or more owners that is
not organized as a corporation.

Securities and Exchange
Commission (SEC)
U.S. governmental agency that oversees
the U.S. financial markets.
Sole Proprietorship
A business with a single owner.

Cost Principle Going Concern Assumption

Stockholder
A person who owns stock in a corporation.
Audit
An examination of a company's financial
statements and records.

International Accounting
Standards Board (IASB)
The private organization that oversees the
creation and governance of International
Financial Reporting Standards (IFRS).
International Financial Reporting
Standards (IFRS)
A set of global accounting guidelines,
formulated by the International Accounting
Standards Board (IASB).

Monetary Unit Assumption
The assumption that requires the items on