A transaction that is recoreded as a debit or credit entry.

A statement that must be true no matter what changes.

The system responsible for creating financial reports for both internal and externa parties.

The calculation of economic cost in terms of money and time or other units.

The rules that tell when and how both income and expenses are reported. The two common ways are accrual and cash method .

Basic assuptions that determine transaction methods.

Using accounting rules to distort reports to make them appear better or worse than they acutally are. This is why both GAAP and nonGAAP are used to inform investors.

The time period a firm uses for account statements. If internal it can be monthly or quarterly. For external is is a year.

The rules that help manage an organization ‘s financial statements. They are disclosed in annual financial statements. Refer to summary of segnificant accounting policies .

The daily use of policy in an organization .

The board of american institute of CPA. They were the first to publish the GAAP that replaced the 1973 financial accounting standards board.

Accounting method applied to internal controls and more routine issues.

Any earnings that have not yet been taxed.

When accrual statements are used to predict profits. Or the ratio of earnings before interest and taxes. It is a percentage of capital employed in the accounting period . AKA […]

The three rations are efficiency, profitability , and solvency. Refer to ratio analysis .

All the records about a company and its assets. They are used in audits and financial reviews.

The year long period that represents a companies financial year .

A change in rules that go beyone standard practices. It keeps the economies on a national level. It is used to help globalize standard practices.

Statements given periodically to show the firms position.

Documents circulated that recommend accounting practices to the accounting community.

The amount a companies statements will change because of rate changes. AKA accounting exposure or translation risk .

Separating a companies accounts so cost and profits with each can be used individually.

Computer programs that aid in the keepign of accounting information like quickbooks.

The term for financial accounting standards in the UK.

The UK organization responsible for making the standards of accounting. The international accounting standards are published.