Lesson 3 Financial Accounting

A specific type of fraud that involves misrepresenting the truth on any one of the financial statements, either by lying or by omitting important information causing loss to another.

• Accounting Fraud

• Economic Fraud

• Financial Fraud

• White Collar Fraud

The professional organization that CPAs may join. The organization creates and administers the CPA exam and nurtures CPA professional practice.

• American Institute of Certified Public Accountants (AICPA)

• Financial Accounting Standards Board (FASB)

• Public Company Accounting Oversight Board (PCAOB)

• Securities and Exchange Commission (SEC)

Top managers who run the company and are responsible for its success or failure.

• Executives

• General Manager

• Operations Manager

• Cashier

A private nonprofit board that establishes specific rules and regulations for recording economic events in an accounting system.

• Financial Accounting Standards Board (FASB)

• American Institute of Certified Public Accountants (AICPA)

• Public Company Accounting Oversight Board (PCAOB)

• International Financial Reporting Standards (IFRS)

Misrepresenting the truth, cheating, or deceiving others on purpose.

• Fraud

• White Collar Crime

• Conning

Guidelines that accountants consistently use to prepare financial statements, making multiple statements comparable to one another.

• Generally Accepted Accounting Principles (GAAP)

• Generally Applied Accounting Principles (GAAP)

• Generally Accepted and Applied Accounting Principles (GAAAAP)

• General Accounting Principles (GAP)

A set of accounting rules and regulations used throughout the world (with the notable exception of the United States) in order to ease the process of comparing financial statements between companies in different countries.

• International Financial Reporting Standards (IFRS)

• International Accounting Reporting Standards (IARS)

• Universial Financial Reporting Standards (UFRS)

• Universial Accounting Reporting Standards (UARS)

The government agency that collects taxes and enforces tax laws.

• Internal Revenue Service (IRS)

• Donald Trump's Enforcement Agency

• International Revenue Service (IRS)

• Internal Reporting Service (IRS)

Principle that requires the same accounting rules be followed at all times.

• Principle of Consistency

• Principle of Regularity

• Principle of Sincerity

• Principle of Permanence of Methods

Principle that assumes the business is in business for the long haul and is not expected to be interrupted or to close down in the short run.

• Principle of Consistency

• Principle of Continuity

• Principle of Permanence of Methods

• Principle of Periodicity