Chapter 1

The authorative accounting standards setting organization

(FASB) Financial Accounting Standards Board

Accounting can be traced back to _____

3000 BC

Certified Internal Auditor (CIA)

Accountants hired by a company to do internal audits

Government and Not For Profit Accountants

Accountants who work for the government or organizations

Current accounting standards today

Accounting Standards Codification (FASB Codification)

The FASB can issue new standards by communicating via a____

Accounting Standards Update (ASU)

The authoritative financial accounting standards-setting body in the United States is presently the:

Financial Accounting Standards Board (FASB)

Which of the following is an objective of financial reporting by business enterprises?

Financial reporting should provide information about the economic resources of an enterprise, the claims to those resources, and changes in those resources and claims to them

Key ethical charesteristics of accoutants

Integrity Objectivity Independence competence

(IFRS) International Financial Reporting Standards

International reporting standards practiced around the world.

Wrote the first bookkeeping system

Luca Pacioli

Primary users of accounting information

Managment Investors/Shareholders Creditors/Suppliers Employees SEC

Independence

Not related to the entity recieving the financial services

regulatory body created under (SOX) to oversee activities of the auditing profession

Public Company Accounting Oversight Board (PCAOB)

Law that makes publically traded companies' reporting requirements much more strict and regulated

Sarbanes-Oxley Act of 2002 (SOX)

The FASB has issued 168 __________

Statements of Financial Accounting Standards (SFAS)

Accounting is sometimes called _____

The language of business

Certified Management Accountant (CMA)

a certification that requires broad two part examination

independent auditors report

a report that is typically 4 paragraphs long that identifies that financial statements were audited, states that the audit is in accordance with PCAOB regulations, and contains the auditors opinion on the company's financial records

cost accounting

a subset of managerial accounting that relates to the determination and accumulation of product, process or service costs

qualfied opinion is ______

bad

integrity

being honest and fourthcoming

Managerial Accounting

concerned with the use of economic and financial information to plan and control many activities of the entity and to support the management decision making process

annual report

contains financial statements and the notes to the financial statements, as well as management's discussion and analysis.

19th century industrial revolution birthed the modern _________

corporation

Managment

decision makers of the company who perform functions such as planning, directing, and controlling

accrural accounting

documenting expenses when they are incurred

financial accounting has an ___________ focus

external

Major classifications of accounting activity would not include:

financial accounting, national accounting, cost accounting.

objectivity

freedom from conflict (no personal gain)

unqualified opinion is ______

good

Cost Accounting Standards Board (CASB)

has authority to establish accounting standards for government contracts over $700,000

Governmental Accounting Standards Board (GASB)

has authority to establish accounting standards for state and local governments

Public Company Accounting Oversight Board (PCAOB)

has the authority to set and enforce auditing, attestation, quality control, and ethics standards for public companies

cost and managerial accounting have an _________ focus

internal

International Accounting Standards Board (IASB)

international accounting principles

competence

knowing what the hell youre doing

Cost accounting is a subset of _________

managerial accounting

Financial statements typically give us a view of what has happened financially in the _______

past

Bookkeeping

procedures that are used to accumulate the financial results of many of an entity's activities.

Certified Public Accountant (CPA)

requires a certification that can be obtained by taking an accounting examination

Securities and Exchange Commision (SEC)

review accounting information to enforce compliance with federal regulations

Generally Accepted Auditing Standards (GAAS)

standards that must be followed for any CPA conducting an audit

controller

the chief accounting officer of a corporation. Is usually responsible for the accounting functions of the organization

accounting

the process of identifying, measuring, and communicating economic information about an organization for the purpose of making decisions and informed judgements

Accounting can be defined as:

the process of identifying, measuring, and communicating economic information about an organization for the purpose of making decisions and informed judgments.

Financial Accounting

the process that results in the preparation and reporting of financial statements for an entity

Investors/Shareholders

use accounting information to help assess the amounts, timing, and uncertainty of future cash returns to their investments.

Employees

use accounting information to plan for retirement or for benefits packages

Creditors/Suppliers

assess the probability of collection and the risks of late or nonpayment

The ethical concept of integrity means that an individual must:

attempt to be honest and forthright in dealings and communications with others.

The ethical concept of integrity means that an individual must:______________

attempt to be honest and forthright in dealings and communications with others.

internal auditing

auditing that is done within the organization. Typically done by corporations that handle many transactions

audit

an examination of financial records that is required for any publically traded company.

Industrial accouting

accountants hired by larger firms that provide financial services for manufacturing, merchandising, and service firms of all sizes

Public Accounting

accountants who cover a wide variety of financial services. Usually employed by smaller firms but can vary.

Income Tax Accounting

accounting that involves preparing income tax staements