Chapter 16

Chapter 16 - Chapter 16 Understanding Accounting and...

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Chapter 16 – Understanding Accounting and Financial Statements Accounting – practice of measuring, interpreting, and communicating financial information to support internal and external business decision making. Public Accountant Management Accountant Certified Public Accountants (CPAs) – accountant who met specified educational and experimental requirements and passed a comprehensive examination on accounting theory and practice. Government Accountants Accounting Process – set of activities involved in converting information about individual transactions into financial statements. Public Company Accounting Oversight Board – five-member board created by the Sarbanes-Oxley Act of 2002 to set audit standards and to monitor accounting firms that certify the books of publicly traded firms; members of the board are appointed by the Securities and Exchange Commission to serve staggered five-year-terms. Asset – anything of value owned or leased by a business. Liability – claim against a firm’s assets by a creditor. Owner’s Equity – All claims of the proprietor, partners, or stockholders against the assets
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This note was uploaded on 11/28/2010 for the course BUS 101 taught by Professor Hunter during the Spring '08 term at Bryant.

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Chapter 16 - Chapter 16 Understanding Accounting and...

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