Match the appropriate letter for the key term or concept to each definition provided (items 1–10). Note that not all key terms and concepts will be used.
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a. Accounting |
p. Generally accepted accounting principles |
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b. Entity |
q. Internal auditing |
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c. Financial accounting |
r. Securities and Exchange Commission |
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d. Bookkeeping |
s. Financial Accounting Foundation |
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e. Certified Public Accountant |
t. Financial Accounting Standards Board |
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f. Managerial accounting |
u. Statements of Financial Accounting Standards |
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g. Cost accounting |
v. Cost Accounting Standards Board |
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h. Certified Management Accountant |
w. Governmental Accounting Standards Board |
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i. Auditing |
x. Accrual accounting |
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j. Public accounting |
y. Integrity |
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k. Certified Internal Auditor |
z. Objectivity |
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l. Generally accepted auditing standards |
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m. Cash flows |
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n. Controller |
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o. Independence |
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a. Accounting |
1. The process of identifying, measuring, and communicating economic information about an organization for the purpose of making decisions or informed judgments.
2. Accounting that recognizes revenues and expenses as they occur, even though cash receipts from revenues and cash disbursements related to expenses may occur before or after the event that causes revenue or expense recognition.
3. The process of examining the financial statements of an entity by an independent third party with the objective of expressing an opinion about the fairness of the presentation of the entity’s financial position, results of operations, changes in financial position, and cash flows.
4. Procedures that are used to keep track of an entity’s financial transactions and to accumulate the results of its operations.
5. Pronouncements of the Financial Accounting Standards Board (FASB) that constitute generally accepted accounting principles.
6. Accounting that is concerned with the use of economic and financial information to plan and control the activities of an entity and to support the management decision making process.
7. An organization, individual, or group of organizations or individuals for which accounting services are performed.
8. A unit of the federal government that is responsible for establishing regulations and ensuring that full disclosure is made to investors about large companies and their securities traded in interstate commerce.
9. Pronouncements of the Financial Accounting Standards Board and its predecessors that constitute appropriate accounting for various business transactions (principles used for reporting financial position and results of operations to investors and creditors).
10. The personal characteristic of honesty, including being forthright in dealings and communications with others.