MIE 201 EXAM 5 STUDY GUIDE
accounting - Answers - the recording, measurement, and interpretation of financial
information
certified public accountant - Answers - an individual who has been certified by the state
in which they practice to provide accounting services ranging from preparation of
financial records and the filing of tax returns to complex audits of corporate financial
records
vault.com - Answers - uses a weighted ranking system based on survey results to
create a score that represents work-life quality issues to reflect the prestige of the firm
forensic accounting - Answers - accounting that is fit for legal review, involving
analyzing financial documents in search of fraudulent entries or financial misconduct
Association of certified fraud examiners - Answers - certifies accounting professionals
as certified fraud examiners
private accountants - Answers - accountants employed by large corps, gov't agencies,
and other orgs to prepare and analyze their financial statements
certified management accountants - Answers - private accountants who are certified
can have some managerial responsibility
difference between accounting and bookkeeping - Answers - bookkeeping is limited to
recording business transactions, while accounting analyzes the data
managerial accounting - Answers - the internal use of accounting statements by
managers in planning and directing the organization's activities
cash flow - Answers - the movement of money through an organization over a daily,
weekly, monthly, or yearly basis
budget - Answers - an internal financial plan that forecasts expenses and income over a
set period of time
top-down master budget - Answers - budgets that begin at upper management level and
filter down to individual department level
bottom-up budget - Answers - budgets that start at department level and are combined
at chief executive's office
operating expenses - Answers - cash outflows like wages, material costs, taxes
, operating revenues - Answers - cash inflows in form of payments from customers
trip wire/feedback loop - Answers - deviations between operating expenses and
revenues
annual report - Answers - a summary of the firm's financial information, products, and
growth plans for owners and potential investors
for a financial statement to termed "audited" it must... - Answers - be signed by a
certified public accountant
assets - Answers - a firm's economic resources, or items of value that it owns, such as
cash, inventory, land, and other tangible and intangible things
liabilities - Answers - debts the firm owes to others
owners' equity - Answers - all of the money that has ever been contributed to the
company that never has to be paid back
accounting equation - Answers - relationship among assets, liabilities, and owners'
equity
double entry bookkeeping - Answers - a system of recording and classifying business
transactions in separate accounts in order to maintain the balance of the accounting
equation
accounting cycle - Answers - the 4 step procedure of an accounting system: examining
source documents, recording transactions in an accounting journal, posting recorded
transactions, and preparing financial statements
journal - Answers - a time ordered list of account transactions
ledger - Answers - a book or computer program with separate files for each account
posting - Answers - the process of transferring info from a journal to a ledger
trial balance - Answers - a summary of the balances of all the accounts in the general
ledger
ratio analysis - Answers - calculations that measure an org's financial health; brings the
complex info from the income statement and balance sheet into sharper focus so that
managers, lenders, owners, and other interested parties can measure the productivity,
profitability, and financing mix with similar entities
accounting - Answers - the recording, measurement, and interpretation of financial
information
certified public accountant - Answers - an individual who has been certified by the state
in which they practice to provide accounting services ranging from preparation of
financial records and the filing of tax returns to complex audits of corporate financial
records
vault.com - Answers - uses a weighted ranking system based on survey results to
create a score that represents work-life quality issues to reflect the prestige of the firm
forensic accounting - Answers - accounting that is fit for legal review, involving
analyzing financial documents in search of fraudulent entries or financial misconduct
Association of certified fraud examiners - Answers - certifies accounting professionals
as certified fraud examiners
private accountants - Answers - accountants employed by large corps, gov't agencies,
and other orgs to prepare and analyze their financial statements
certified management accountants - Answers - private accountants who are certified
can have some managerial responsibility
difference between accounting and bookkeeping - Answers - bookkeeping is limited to
recording business transactions, while accounting analyzes the data
managerial accounting - Answers - the internal use of accounting statements by
managers in planning and directing the organization's activities
cash flow - Answers - the movement of money through an organization over a daily,
weekly, monthly, or yearly basis
budget - Answers - an internal financial plan that forecasts expenses and income over a
set period of time
top-down master budget - Answers - budgets that begin at upper management level and
filter down to individual department level
bottom-up budget - Answers - budgets that start at department level and are combined
at chief executive's office
operating expenses - Answers - cash outflows like wages, material costs, taxes
, operating revenues - Answers - cash inflows in form of payments from customers
trip wire/feedback loop - Answers - deviations between operating expenses and
revenues
annual report - Answers - a summary of the firm's financial information, products, and
growth plans for owners and potential investors
for a financial statement to termed "audited" it must... - Answers - be signed by a
certified public accountant
assets - Answers - a firm's economic resources, or items of value that it owns, such as
cash, inventory, land, and other tangible and intangible things
liabilities - Answers - debts the firm owes to others
owners' equity - Answers - all of the money that has ever been contributed to the
company that never has to be paid back
accounting equation - Answers - relationship among assets, liabilities, and owners'
equity
double entry bookkeeping - Answers - a system of recording and classifying business
transactions in separate accounts in order to maintain the balance of the accounting
equation
accounting cycle - Answers - the 4 step procedure of an accounting system: examining
source documents, recording transactions in an accounting journal, posting recorded
transactions, and preparing financial statements
journal - Answers - a time ordered list of account transactions
ledger - Answers - a book or computer program with separate files for each account
posting - Answers - the process of transferring info from a journal to a ledger
trial balance - Answers - a summary of the balances of all the accounts in the general
ledger
ratio analysis - Answers - calculations that measure an org's financial health; brings the
complex info from the income statement and balance sheet into sharper focus so that
managers, lenders, owners, and other interested parties can measure the productivity,
profitability, and financing mix with similar entities
