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MIE 201 Test 5 Makanui Exam/136 Questions and Answers
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MIE 201 Test 5 Makanui Exam/136 Questions and Answers
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MIE 201 Test 5 Makanui Exam/136Questions and Answers
accounting - -the recording, measurement, and interpretation of financial
information
-certified public accountant (CPA) - -an individual who has been state
certified to provide accounting services ranging from the preparation of
financial records and the filing of tax returns to complex audits of corporate
financial records
-forensic accounting - -accounting that is fit for legal review, involves
analyzing financial documents in search of fraudulent entries or financial
misconduct
-private accountants - -accountants employed by large corporations,
government agencies, and other organizations to prepare and analyze their
financial statements
-certified management accountants (CMAs) - -private accountants who,
after rigorous examination, are certified by the Institute of Management
Accountants and who have some managerial responsibility
-bookkeeping - -often mistaken for accounting but is typically limited to the
routine, day-to-day recording of business transactions
-managerial accounting - -the internal use of accounting statements by
managers in planning and directing the organization's activities
-cash flow - -the movement of money through an organization over a daily,
weekly, monthly, or yearly basis
-budget - -an internal financial plan that forecasts expenses and income
over a set period of time
-annual report - -summary of a firm's financial information, products, and
growth plans for owners and potential investors
-assets - -a firm's economic resources, or items of value that it owns, such
as cash, inventory, land, equipment, buildings, and other tangible and
intangible things
-liabilities - -debts that a firm owes to others
, -owner's equity - -equals assets minus liabilities and reflects historical
values
-accounting equation - -assets = liabilities + owner's equity
-double-entry bookkeeping - -a system of recording and classifying business
transactions that maintains the balance of the accounting equation
-accounting cycle - -the four-step procedure of an accounting system:
examining source documents, recording transactions in an accounting
journal, posting recorded transactions, and preparing financial statements
-journal - -a time-ordered list of account transactions
-ledger - -a book or computer file with separate sections for each account
-trial balance - -a summary of the balances of all the accounts in the
general ledger
-generally accepted accounting principles (GAAP) - -a different set of
accounting principles or rules manufacturing firms, service providers, and
nonprofit organizations use upon which the public accounting profession has
agreed
-equivalent terms for revenues - -sales
goods or services sold
-equivalent terms for gross profit - -gross income
gross earnings
-equivalent terms for operating income - -operating profit
earnings before interest and taxes (EBIT)
income before interest and taxes (IBIT)
-equivalent terms for income before taxes (IBT) - -earnings before taxes
(EBT)
profit before taxes (PBT)
-equivalent terms for net income (NI) - -earnings after taxes (EAT)
profit after taxes (PAT)
-equivalent terms for income available to common stockholders - -earnings
available to common stockholders
-income statement - -a financial report that shows an organization's
profitability over a period of time-month, quarter, or year
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