Managerial accounting		(FASB) Independent group of fulltime memebers responsible for setting accounting rules.
Expanded accounting equation		Owner's claim on the assets of a business; equals the residual interest in an entity's assets after deducting liabilites; also called equity.
Corporation		Owners of a corporation; also called stockholders.
Net assets		A financial statement that lists cash inflows (receipts) and cash outflows (payments) during a period; arranged by operating, investing, and financing.
Management accounting		Rules that specify acceptable accounting practices.
Profit		Principle that requires a business to accounted for separately from its owner(s) and from any other entity.
Ethics		Excess of expenses over revenues for a period.
Sarbanes-Oxley Act		Codes of conduct by which actions are judged as right or wrong, fair or unfair, honest or dishonest.
Equity		Assets=Liabilities Equity; Equity equals [Owner capital-Owner withdrawals Revenues-Expenses] for a noncorporation; Equity equals [contributed capital retained earnings revenues-expenses] for a corporation where dividends are subtracted from retained earnings.
Accounting		Assets put into the business by the owner.
Cost principle		Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.
Going-concern principle		Equality involving a company's assets, liabilities, and equity. Assets=Liabilities Equity; also called balance sheet equation.
Audit		Analysis and report of an organization's accounting system, its records, and its reports using various tests.
Liabilities		Outflows or using up of assets as part of operations of a business to generate sales.
Generally accepted accounting principles		Amount earned after subtracting all expenses necessary for and matched with sales for a period; also called net income, profit, or earnings.
Internal users		Report of changes in equity over a period; adjusted for increases (owner investment and net income) and for decreases (withdrawals and net loss).
Balance sheet equation		Created the Public Company Accounting Oversight Board, regulates analyst conflicts, imposes corporate goverance requirements, enhances accounting and control disclosures, impacts insider transactions and executive loans, establishes new types of criminal conduct, and expands penalties for violations of federal securities laws.
Business entity principle		Amount earned after subtracting all expenses necessary for and matched with sales for a period; also called net income, income, or earnings.
Monetary unit principle		(IASB) Group that identifies preferred accounting practices and encourages global acceptance; issues International Financial Reporting Standards (IFRS).
Net income		Owner's claim on the assets of a business; equals the residual interest in an entity's assets after deducting liabilites; also called net assets.
Withdrawals		Owners of a corporation; also called shareholders.
Internal transactions		(SEC) Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.
Income statement		Amount earned after subtracting all expenses necessary for and matched with sales for a period; also called income, profit, or earnings.
Revenue recognition principle		Financial statement that lists types and dollar amounts of assets, liabilities, and equity at a specific date.
Assets		Financial statement that subtracts expenses from revenues to yield a net income or loss over a specified period of time; also includes any gains or losses.
External transaction		Principle that assumes transactions and events can be expressed in money units.
Recordkeeping		Area of accounting mainly aimed at serving the decision-making needs of internal users; also called management accounting.
External users		Equity of a corporation divided into ownership units; also called shares.
Expenses		Gross increase in equity from a company's business activities that earn income; also called revenues.
IASB		Persons using accounting information who are not directly involved in running the organization.
Net loss		Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.
Bookkeeping		Activites within an organization that can affect the accounting equation.
Statement of cash flows		Area of accounting mainly aimed at serving external users.
Capital stock		Happenings that both affect an organizations' financial position and can be reliably measured.
Revenues		Gross increase in equity from a company's business activities that earn income; also called sales.
Stockholders		Business owned by one person that is not organized as a corporation; also called proprietorship.
Sales		Independent group of fulltime memebers responsible for setting accounting rules.
GAAP		Equity of a corporation divided into ownership units; also called stock.
Objectivity principle		Payment of cash or other assets from a proprietorship or partnership to its owner or owners.
Events		Corporation's basic ownership share; also generically called capital stock.
Statement of owner's equity		Information and measurement system that identities, records, and communicates relevant information about a company's business activities.
Sole proprietorship		Part of accounting that ivolves recording transactions and events, either manually or electronically; also called recordkeeping.
International Accounting Standards Board		Principle that prescribes financial statements to reflect the assumption that the business will continue operating.
Owner investment		Amount earned after subtracting all expenses necessary for and matched with sales for a period; also called net income, profit, or income.
Earnings		(GAAP) Rules that specify acceptable accounting practices.
SEC		Principle that prescribes independent, unbiased evidence to support financial statement information.
Stock		Part of accounting that involves recording transactions and events, either manually or electronically; also called bookkeeping.
Common stock		Resources a business owns or controls that are expected to provide current and future benefits to the business.
Financial accounting		Uncertainty about an expected return.
FASB		The principle prescribing that revenue is recognized with earned.
Shareholders		Group that identifies preferred accounting practices and encourages global acceptance; issues International Financial Reporting Standards (IFRS).
Income		Persons using accounting information who are directly involved in managing the organization.
Shares		Exchanges of economic value between one entity and another entity.
Accounting Equation		Area of accounting mainly aimed at serving the decision-making needs of internal users; also called managerial accounting.
Partnership		Corporation's basic ownership share; also called common stock.
Risk		Unincorporated association of two or more persons to pursue a business for profit as co-owners.
Financial Accounting Standards Board		Monies received from an investment; often in percent form.
Securities and Exchange Commission		Equality involving a company's assets, liabilities, and equity. Assets=Liabilities Equity; also called accounting equation.
Return		Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.
Balance Sheet		Creditors' claims on an organization's assets; involves a probable future payment of assets, products, or services that a company is obligated to make due to past transactions or events.