Accounting basic keyterms

Key Terms and Concepts
Accounting (p.3) The process of identifying, measuring and communicating economic information about an organization for the purpose of making decisions and informedjudgments.
Accrual accountings (p.20) Accounting that recognizes revenues and expenses as they occur, even though the cash receipt from the revenue or the cash disbursement related to the expense may occurbefore or after the event the causes revenue or expense recognition.
Annual report (p.8) A document distributed to shareholders and other interested parties that contains the financial statements,explanatory notes, and management´s discussion and analysis of financial and operating factors that affected the firm together with the report of the external auditor´s examination of the financialstatements.
Auditing (p.7) The process of examining the financial statements of an entity by an independent third party with the objective of expressing an opinion about the fairness of the presentationof the entity´s financial position, results of operations, changes in financial position, and cash flows.
The practice of auditing is less precisely referred to as public accounting.
Bookkeeping(p.6) Procedures that are used to keep track of financial transactions and accumulate the results of an entity´s financial activities.
Cash flow (p.6) cash receipts or disbursements of an entity.Certified Management Accountant (CMA) (p.7) Professional designations earned by passing a broad, four-part examination and meeting certain experience requirements. Examination topics includeeconomics, corporate finance, information management, financial accounting and reporting, management reporting, decision analysis, and behavior issues.
Certified Public Accountants (CPA) (p.6) A professionaldesignations earned by fulfilling certain education and experience requirements, in addition to passing a comprehensive, four-part examination. Examination topics include financial accounting...