Accounting Definitions - Accounting Definitions Accountant...

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Accounting Definitions Accountant an individual trained and knowledgeable in the profession of accountancy; and preferably a member of a professional accounting organization (e.g., a CGA, CMA or CA). Accountant’s Communication the accountant’s written communication that prefaces the financial statements; and additionally, see Auditors’ Report, Review Engagement Report and Notice to Reader. Accounting (Accountancy) functions include analyzing, interpreting and examining the results of the bookkeeping process; and information system design and development of controls and procedures. Accounting Equation a description of the relationship between a company’s assets, liabilities and equity; expressed as Assets = Liabilities + Owner’s Equity; and also known as the balance sheet equation. Accrued Expense liability, created by consumption of economic benefit that has not been invoiced and does not require payment until a later date (e.g., accrued property taxes). Accrued Revenue an asset, created by realization of economic benefit, which normally is not due or invoiced until a later date (e.g., accrued interest income). Amortization systematic allocation of cost over a related time period the expensing of both tangible and intangible assets; and often referred to as “depreciation.” Annuity a sequence of equal payments, usually made at regular intervals of time. Articles of Incorporation legal documents that recognize a corporation as a legal entity additionally, are granted by the federal or provincial jurisdiction in which the company is incorporated; and the documents would include the name of the company, the nature of business activities, and the number and types of capital stock it can sell. Asset anything of value owned or controlled by a corporation or individual—may be tangible or intangible; and anything owned by the company that provides a future benefit. Audit an examination of records or financial accounts to verify their accuracy; and additionally, see Audit (External); Compliance Audit; Environmental Audit; Forensic Audit; Internal Audit; and Operational Audit. Auditor see External Auditor; and see Internal Auditor. Auditors’ Report the report that prefaces financial statements and expresses the opinion of the external auditor as to the fairness of the financial statements attached. Balance amount arrived at by adding all debits and subtracting all credits; and to ensure total debits equal total credits. Balance Sheet statement, at a particular point in time, of the financial position of a business or organization—divided into three parts—assets, liabilities and ownership (equity); and also known as statement of financial position. Bank Indebtedness
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This note was uploaded on 02/07/2011 for the course BUS 209 taught by Professor Z.gougoumanova during the Spring '11 term at American University in Bulgaria.

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Accounting Definitions - Accounting Definitions Accountant...

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