Accounting chapter 1

A partnership is owned by stockholders or shareholders

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Reviewing the events that have taken place and determining how this affects the business is called interpreting.

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The six major steps of the accounting process are analyzing, recording, classifying, summarizing, reporting, and interpreting.

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Writing or using one of the latest technological advances to enter a transaction in the accounting records is called summarizing.

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A business that makes a product to sell is called a manufacturing business.

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Accountants design accounting information systems and analyze and interpret information.

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Certified Public Accountant is a professional designation that a public accountant can earn by passing a written exam and completing a specific amount of work experience.

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Cost accounting is used to develop a financial plan for a company.

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Generally accepted accounting principles are procedures and guidelines to be followed in the accounting and reporting process.

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Since financial information is communicated in accounting terms, accounting is said to be the "language of business."

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Stockholders have very little influence on business decisions.

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The Financial Accounting Standards Board develops generally accepted accounting principles to provide some assurance that companies are reporting business activities in a similar manner.

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the purpose of accounting is to provide financial info about a business to individuals and organizations

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