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Cards In This Set
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What is accounting?
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The language of business, used to measure and communicate economic information to various stakeholders
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FInancial Accounting
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Information related to the financial resources, obligations and activities on an economic entity.
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Management Accounting
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Development and interpretation of accounting information to assist with managers' operating decisions
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Tax accounting
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Creation and submission of legally appropriate submissions for income due to government authorities
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Financial Statements
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Monetary summary of the operations of an entity
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Primary types of financial statements
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Balance sheet, Income statement, statement of cash flows
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Balance Sheet
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Describes where the enterprise stands at specific date
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Income statement
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Depicts revenues and expenses for a designated period of time
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Statement of Cash Flows
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Depicts the ways cash has changed over a period of time
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Business entity
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Separate from the personal affairs of its owner
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Assets
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Economic resources that are owned by the business and are expected to benefit future operations
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Liabilities
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Debts that represent negative future cash flows for the enterprise
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Owners' Equity
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The owners' claims on the assets of the business
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Notes
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Provide facts necessary for the proper interpretation of the statements
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Window dressing
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When management takes measures to make the company appear as appealing as possible in its financial statements.
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