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Date Submitted: 09/14/2011 08:36 AM
Chapter 1
FinACC- refers to info describing the fin resources, obligations, and activities of an economic entity.
MgtACC- involves the development and interpretation of an accounting info intended specifically to assist mgt in operating the business.
Acc system- consists of personnel, procedures, technology, and records used by an org. 1. To develop acc info. 2. To communicate this info to decision makers.
Internal control- process designed to provide reasonable assurance that the org produces reliable fin reports.
Control environment- foundation for all the other elements of internal control. Factors that affect the company’s control env. Are integrity, ethical values, competence. Operating style.
Risk assessment- involves identifying, analyzing, and managing those risks.
Control activities- the policies and procedures that mgt puts in place to address the risks identified during the risk assessment.
Monitoring- enables the company to evaluate the effectiviness of its system of internal control over time.
External users- individuals that have a current or potential financial interest in the reporting enterprise.
Return of your investment- return to you at some future date of the amount you had invested.
Return on your investment- paying to you something for the use of your funds, either as an owner or a creditor.
Fin. Statement- simply monetary declaration of what is believed to be true about the company.
Balance sheet- position statement that shows where the company stands at a specific date.
Income statement- activity statement that shows details and results of the company’s profit-related activities for a period of time.
Statement of cash flows- activity statement that shows the details of the company’s involving cash during a period of time.
GAAP- acc info that is communicated externally to investors, creditors, and other users must be prepared in accordance with standards that are understood by both the preparers and...