MIE 201 Test 5 Makanui
accounting - correct answer the recording, measurement, and interpretation of financial information
certified public accountant (CPA) - correct answer 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 - correct answer accounting that is fit for legal review, involves analyzing financial documents in search of fraudulent entries or financial misconduct
private accountants - correct answer accountants employed by large corporations, government agencies,
and other organizations to prepare and analyze their financial statements
certified management accountants (CMAs) - correct answer private accountants who, after rigorous examination, are certified by the Institute of Management Accountants and who have some managerial responsibility
bookkeeping - correct answer often mistaken for accounting but is typically limited to the routine, day-
to-day recording of business transactions
managerial accounting - correct answer the internal use of accounting statements by managers in planning and directing the organization's activities
cash flow - correct answer the movement of money through an organization over a daily, weekly, monthly, or yearly basis
budget - correct answer an internal financial plan that forecasts expenses and income over a set period of time annual report - correct answer summary of a firm's financial information, products, and growth plans for owners and potential investors
assets - correct answer 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 - correct answer debts that a firm owes to others
owner's equity - correct answer equals assets minus liabilities and reflects historical values
accounting equation - correct answer assets = liabilities + owner's equity
double-entry bookkeeping - correct answer a system of recording and classifying business transactions that maintains the balance of the accounting equation
accounting cycle - correct answer the four-step procedure of an accounting system: examining source documents, recording transactions in an accounting journal, posting recorded transactions, and preparing financial statements
journal - correct answer a time-ordered list of account transactions
ledger - correct answer a book or computer file with separate sections for each account
trial balance - correct answer a summary of the balances of all the accounts in the general ledger
generally accepted accounting principles (GAAP) - correct answer a different set of accounting principles or rules manufacturing firms, service providers, and nonprofit organizations use upon which the public accounting profession has agreed
equivalent terms for revenues - correct answer sales
goods or services sold
accounting - correct answer the recording, measurement, and interpretation of financial information
certified public accountant (CPA) - correct answer 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 - correct answer accounting that is fit for legal review, involves analyzing financial documents in search of fraudulent entries or financial misconduct
private accountants - correct answer accountants employed by large corporations, government agencies,
and other organizations to prepare and analyze their financial statements
certified management accountants (CMAs) - correct answer private accountants who, after rigorous examination, are certified by the Institute of Management Accountants and who have some managerial responsibility
bookkeeping - correct answer often mistaken for accounting but is typically limited to the routine, day-
to-day recording of business transactions
managerial accounting - correct answer the internal use of accounting statements by managers in planning and directing the organization's activities
cash flow - correct answer the movement of money through an organization over a daily, weekly, monthly, or yearly basis
budget - correct answer an internal financial plan that forecasts expenses and income over a set period of time annual report - correct answer summary of a firm's financial information, products, and growth plans for owners and potential investors
assets - correct answer 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 - correct answer debts that a firm owes to others
owner's equity - correct answer equals assets minus liabilities and reflects historical values
accounting equation - correct answer assets = liabilities + owner's equity
double-entry bookkeeping - correct answer a system of recording and classifying business transactions that maintains the balance of the accounting equation
accounting cycle - correct answer the four-step procedure of an accounting system: examining source documents, recording transactions in an accounting journal, posting recorded transactions, and preparing financial statements
journal - correct answer a time-ordered list of account transactions
ledger - correct answer a book or computer file with separate sections for each account
trial balance - correct answer a summary of the balances of all the accounts in the general ledger
generally accepted accounting principles (GAAP) - correct answer a different set of accounting principles or rules manufacturing firms, service providers, and nonprofit organizations use upon which the public accounting profession has agreed
equivalent terms for revenues - correct answer sales
goods or services sold
