MIE 201 Test 5 Makanui with Complete Solutions

MIE 201 Test 5 Makanui with Complete Solutions accounting the recording, measurement, and interpretation of financial information certified public accountant (CPA) an individual who has been state certified to provide accounting services ranging from the preparation of financial records and the filing of tax returns to complex audits of corporate financial records forensic accounting accounting that is fit for legal review, involves analyzing financial documents in search of fraudulent entries or financial misconduct private accountants accountants employed by large corporations, government agencies, and other organizations to prepare and analyze their financial statements certified management accountants (CMAs) private accountants who, after rigorous examination, are certified by the Institute of Management Accountants and who have some managerial responsibility bookkeeping often mistaken for accounting but is typically limited to the routine, day-to-day recording of business transactions managerial accounting the internal use of accounting statements by managers in planning and directing the organization's activities cash flow the movement of money through an organization over a daily, weekly, monthly, or yearly basis budget an internal financial plan that forecasts expenses and income over a set period of time annual report summary of a firm's financial information, products, and growth plans for owners and potential investors assets a firm's economic resources, or items of value that it owns, such as cash, inventory, land, equipment, buildings, and other tangible and intangible things liabilities debts that a firm owes to others owner's equity equals assets minus liabilities and reflects historical values accounting equation assets = liabilities + owner's equity double-entry bookkeeping a system of recording and classifying business transactions that maintains the balance of the accounting equation accounting cycle the four-step procedure of an accounting system: examining source documents, recording transactions in an accounting journal, posting recorded transactions, and preparing financial statements