chapter 15 vocabulary

owners' equity

_____ represents the owners' initial investment in the business plus profits that were not paid out to owners over time in the form of cash dividends.

financial accounting standards board (FASB)

______ is primary responsible for evaluating, setting, or modifying the generally accepted accounting principles.

leverage ratio

______ measures the extent to which a firm relies on debt financing.

liabilty

a claim against a firm's assets by a creditor is a(n) _____.

income statement

a financial record of a company's revenues, expenses, and profits over a period of time is called the _____.

certified public accountant

a(n) _____ demonstrates his or her accounting knowledge by meeting state requirements for education and experience, as well as successfully completing a number of rigorous tests in accounting theory and practice, auditing, law, and taxes.

budget

a(n) _____ is a planning and controlling tool that reflects the firm's expected sales revenues, operating expenses, and cash receipts and outlays.

asset

a(n) _____ is anything of value owned or leased by a business,

management accountant

a(n) _____ is employed by a business other than a pubic accounting firm.

profitability ratio

an organization's overall financial performance is measured by its ______, which evaluates the ability to generate revenues in excess of operating costs and other expenses.

generally accepted accounting practices (GAAP)

financial statements are prepared according to _____, whose principles encompass the conventions, rules, and procedures for determine acceptable accounting practices at a particular time.

open book management

proponents of ______ allow employees to view sensitive financial information so that they better understand how their work contributes to the company's success.

balanced sheet

the _____ is a statement of a firm's financial posterior on a particular date.

international financial reporting standards

the ______ are regulations and interpretations adopted by the international accounting standards board.

foreign corruption practices act

the ______ is the federal law that prohibits u.s. citizens and companies from brining foreign officials to win or continue business.

international accounting standards committee (IASC)

the ______ was established to promote worldwide consistency in financial reporting practices.

accrual accounting

the accounting method that records revenues and expenses when they occur is called _____.

accounting equation

the basic relationship that states assets equal liabilities plus owners' equity is called the _____.