| A | B |
|---|
| Accounting | process of retreiving, recording, storing and summarizing financial transactions for a business |
| Bookkeeping | process of recording daily business transactions; only one part of the accounting process |
| Manual Accounting System | maintaining accounting records by hand |
| Computer Accounting System | maintaining accounting records with the help of computer software |
| Stakeholder | person who has an interest in a company |
| Profit | amount earned is greater then the amount spent |
| Loss | amount earned is less than amount spent; a loss occurs when there is no profit |
| Creditor | person or company which lends money to another person or company |
| Financial Accounting | form of accounting which produces information for external use through financial statements |
| Management Accounting | produces information mainly for company/management use |
| Tax Accounting | accounting method used to record tax transaction |
| Financial Reporting | process of using information gathered from financial transactions and records |
| Generally Accepted Accounting Principles (GAAP) | common set of accounting rules and procedures; needed in accounting to maintain accuracy and consistency of financial reports |
| Cost Principle | actual cost of an item needs to be stated, not its current value |
| Reliability Principle | accountants must only record information which can be verified |
| Disclosure Principle | all information which is relevant to financial statement must be included in the financial statement |
| Matching Principle | expenses must be reported at the same time of the corresponding (matching) revenue |
| Going Concern Principle | assumption a company intends to continue operations |
| Ethical Principle | duty to uphold rules and regulations based on moral values |
| Shareholders | individuals who own part of a company through stock ownership |
| Social Responsibility | taking actions which benefit society as a whole |
| Social Cost | additional costs beyond normal business costs due to an activity or policy |
| Accountants | records financial transactions and prepare financial reports |
| Management Accountant | records and analyzes financial information for internal use by managers |
| Governments Accountant | maintains and examines records of government |
| Public Accountant | provides services to corporations, governments and individuals; can provide services to multiple companies at once |
| Internal Auditor | examines financial records of companies to ensure proper management of funds; usually provides information to law enforcement if necessary |
| General Ledger Accountant | ensures business transactions are properly recorded |
| International Accountant | specializes in recording and analyzing international (non-GAAP) business transactions |
| Forensic Accountant | specializes in examining accounting transactions for law enforcement |
| Certified Public Accountant (CPA) | designation provided to accountants who have passed the CPA exam and its requirements |
| Certified Management Accounting (CMA) | designation provided to accountants who have passed the CMA exam and it requirements; CMAs specialize more in financial management than CPAs |
