Chapter 1: Accounting and the Business Environment

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Across
  1. 1. (PCAOB) Monitors the work of independent accountants who audit public companies.
  2. 7. (FASB) The private organization that over-sees the creation and governance of account-ing standards in the United States.
  3. 10. Providing information that is complete, neutral, and free from error.
  4. 11. The right to receive cash in the future from customers for goods sold or for services performed.
  5. 14. Represents the basic ownership of a corporation.
  6. 17. The basic tool of accounting, measuring the resources of the business (what the business owns or has control of) and the claims to those resources (what the business owes to creditors and to the owners): Assets = Liabilities + Equity.
  7. 21. A person who owns stock in a corporation.
  8. 22. Any person or business to whom a business owes money.
  9. 23. A business organized under state law that is a separate legal entity.
  10. 24. Reports on the assets, liabilities, and stockholders’ equity of the business as of a specific date.
  11. 28. An examination of a company’s financial statements and records.
  12. 32. Average total assets.
  13. 33. An event that affects the financial position of the business and can be measured with faithful representation.
  14. 36. (SOX) Requires management to review internal control and take responsibility for the accuracy and completeness of their financial reports.
  15. 38. Debts that are owed to creditors.
  16. 41. Business documents that are used to communicate information needed to make business decisions.
  17. 42. (ROA) Measures how profitably a company uses its assets.
  18. 43. A business with a single owner.
  19. 44. A short-term liability that will be paid in the future.
  20. 45. (CFP) Certified professional who specializes in budgeting, planning for retirement, and managing finances.
Down
  1. 2. A distribution of a corporation’s earnings to stockholders.
  2. 3. The result of operations that occurs when total expenses are greater than total revenues.
  3. 4. (SEC) U.S. governmental agency that oversees the U.S. financial markets.
  4. 5. Reports how the company’s retained earnings balance changed from the beginning to the end of the period.
  5. 6. The field of account-ing that focuses on providing information for external decision makers.
  6. 8. Amounts earned from delivering goods or services to customers.
  7. 9. Economic resources that are expected to benefit the business in the future and something the business owns or has control of.
  8. 12. (CMAs) Professional accountants who specialize in accounting and financial management knowledge.
  9. 13. (CGMA) Professional accountant with advanced knowledge in finance, operations, strategy, and management.
  10. 15. Owner contributions to a corporation.
  11. 16. (GAAP) Accounting guidelines, currently for mulated by the Financial Accounting Standards Board (FASB); the main U.S. accounting rule book.
  12. 17. The information system that measures business activities, processes the information into reports, and communicates the results to decision makers.
  13. 18. The result of operations that occurs when total revenues are greater than total expenses.
  14. 19. (IASB) The private organization that oversees the creation and governance of International Financial Reporting Standards (IFRS).
  15. 20. The assumption that requires the items on the financial statements to be measured in terms of a monetary unit.
  16. 25. (CPAs) Licensed professional accountants who serve the general public.
  17. 26. The owners’ claims to the assets of the business.
  18. 27. (LLC) A company in which each member is only liable for his or her own actions
  19. 29. the net income or net loss of the business for a specific period.
  20. 30. An organization that stands apart as a separate economic unit.
  21. 31. Reports on a business’s cash receipts and cash payments for a specific period
  22. 34. Assumes that the entity will remain in operation for the foreseeable future.
  23. 35. The field of accounting that focuses on providing information for internal decision makers.
  24. 37. Equity earned by profitable operations of a corporation that is not distributed to stockholders.
  25. 39. The costs of selling goods or services.
  26. 40. A business with two or more owners and not organized as a corporation.