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| IASC | International Accounting Standards Committee. The organization that encourages worldwide cooperation in the development of accounting principles. |
| Investing Activities | Activities undertaken by management to spend capital in ways that are productive and will help a business achieve its objectives. |
| Liabilities | Present obligations of a business to pay cash, transfer assets, or provide services to other entities in the future. |
| Liquidity | Having enough cash available to pay debts when they are due. |
| Management Accounting | The process of producing accounting information for the internal use of a company's management. |
| MIS | Management Information System. The interconnected sybsystems that provide the information needed to run a business. |
| Money Measure | The recording of all business transactions in terms of money. |
| Net Assets | The difference between revenues and expenses when revenues exceed expenses. |
| Net Loss | The difference between revenues and expenses when expenses exceed revenues. |
| Objectivity | Impartiality and intellectual honesty |
| Operating Activities | Activities undertaken by management in the course of running the business. |
| Owners' Equity | The residual interest in the assets of a business entity that remains after deducting the entity's liabilities. |
| Partnership | A business owned by two or more people that is not incorporated. |
| Retained Earnings | The equity of the stockholders generated from the income-producing activities of the business and kept for use in the business. |
| Revenues | Increases in stockholders' equity that result from operating a business. |
| SEC | Securities and Exchange Commission. An agency of the federal government set up by the U. S. Congress to protect the public by regulating the issuing, buying, and selling of stocks. It has the legal power to set and enforce accounting practices for firms whose securities are sold to the general public. |
| Separate entity | A business that is treated as distinct from its creditors, customers, and owners. |
| Sole Proprietorship | A business owned by one person that is not incorporated. |
| Statement of Cash Flows | The financial statement that shows the inflows and outflows of cash from operating activities, investing activities, and financing activities over a period of time. |
| Statement of Retained Earnings | The financial statement that shows the changes in retained earnings over a period of time. |
| Stockholders' Equity | The owners' equity of a corporation, consisting of contributed capital and retained earnings. |
