Accounting for Decision Makers - C213

Accounting - Answer-A system of providing "quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions." American Institute of Certified Public Accountants (AICPA) - Answer-The professional organization of certified public accountants in the United States. Balance Sheet - Answer-Document which reports the resources of a company (the assets), the company's obligations (the liabilities), and the owners' equity, which represents how much money has been invested in the company by its owners. Bookkeeping - Answer-The preservation of a systematic, quantitative record of an activity. Certified Public Accountant - Answer-A person who has taken a minimum number of collegelevel accounting classes, has passed the dreaded CPA exam, and has met other requirements set by his or her state. Financial Accounting - Answer-The name given to accounting information provided for and used by external users. Financial Accounting Standards Board (FASB) - Answer-Governmental body that sets accounting standards in the United States. Financial Statements - Answer-The three primary financial information documents: the balance sheet, income statement, and statement of cash flows. Income Statement - Answer-This document reports the amount of net income earned by a company during a period, with annual and quarterly income statements being the most common. Internal Revenue Service (IRS) - Answer-The government agency responsible for tax collection and tax law enforcement. International Accounting Standards Board (IASB) - Answer-An independent, international body formed to develop worldwide accounting standards. International Financial Reporting Standards (IFRS) - Answer-The accounting standards produced by the IASB. Managerial Accounting - Answer-The name given to accounting systems designed for internal users. Public Company Accounting Oversight Board (PCAOB) - Answer-A private, non-profit organization that effectively serves as an arm of the SEC in registering, inspecting, and disciplining the auditors of all publicly traded companies.