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process of organizing, analyzing, and communicating financial information that is used for decision-making
process of ensuring activities are carried out as intended or designed
process of giving advice or guidance on financial and nonfinancial impact of a course of action
cost accounting
recording and tracking of costs in the manufacturing process
business that grants extended, but short-term, payment terms to other businesses
financial accounting
measures the financial performance of an organization using standard conventions to prepare financial reports
Financial Accounting Standards Board (FASB)
independent, nonprofit organization that sets financial accounting and reporting standards for both public and private sector businesses in the United States that use Generally Accepted Accounting Principles (GAAP)
for-profit business
has the primary purpose of earning a profit by selling goods and services
generally accepted accounting principles (GAAP)
common set of rules, standards, and procedures that publicly traded companies must follow when composing their financial statements
governmental accounting
process of tracking the inflows and outflows of taxpayer funds using prescribed standards
Governmental Accounting Standards Board (GASB)
source of generally accepted accounting principles (GAAP) used by state and local governments in the United States; is a private nongovernmental organization
governmental entity
provides services to the general public (taxpayers)
bank or other institution that has the primary purpose of lending money
managerial accounting
process that allows decision makers to set and evaluate business goals by determining what information they need to make a particular decision and how to analyze and communicate this information
manufacturing business
for-profit business that is designed to make a specific product or products
nonprofit (not-for-profit) organization
tax-exempt organization that serves its community in a variety of areas
not-for-profit (NFP) accounting
including charities, universities, and foundations, helps ensure that donor funds are used for the intended mission of the not-for-profit entity
privately held company
company whose stock is available only to employees or select individuals or groups
publicly traded company
company whose stock is traded (bought and sold) on an organized stock exchange
retail business
for-profit business that purchases products (called inventory) and resells the products without altering them
Securities and Exchange Commission (SEC)
federal regulatory agency that regulates corporations with shares listed and traded on security exchanges through required periodic filings
service business
business that does not sell tangible products to customers but rather sells intangible benefits (services) to customers; can be either a for-profit or a not-for-profit organization
someone affected by decisions made by a company; may include an investor, creditor, employee, manager, regulator, customer, supplier, and layperson
owner of stock, or shares, in a business
business activity or event that has an effect on financial information presented on financial statements
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