Study.com Chapter 8 and 9 Vocabulary Quiz

is the steps taken for the collection, processing and reporting of financial transactions.

• Earnings Before Interest and Taxes (EBIT)

• Accounting Cycle

• Committee on Accounting Procedure

• Balance Sheet Equation

a complex accounting method based on the duality principle and used for any business that needs a more accurate financial analysis. It records financial transaction as both a debit and a credit.

• Apple Accounting System

• Manual Accounting System

• Single Accounting System

• Double-Entry System

is the amount of money that a business owner has personally invested in the business.

• Owner's Equity

• Liquidity

• Liabilities

• Assets

are the mechanisms, rules, and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability and prevent fraud

• Financial Accounting Standards Controls

• Securities and Exchange Commission Controls

• External Controls

• Internal Controls

The purpose of this organization was to regulate financial practices among publicly-traded companies. It was created in the early 1930's to restore faith in the American Economy.

• Securities Exchange Commission

• Financial Accounting Standards Board

• International Accounting Standards Board

• Committee on Accounting Procedure

In the late 1930s, the American Institute of Accountants created a subcommittee to specifically create the GAAP principles. It was comprised 18 accountants and three accounting professors. Shortly after it was formed, the first set of GAAP standards was created.

• Financial Accounting Standards Board

• Committee on Accounting Procedures

• International Accounting Standards Board

• Securities Exchange Commission

Is the board that actually sets the standards of the GAAP, and was created in 1973. Is made up of seven members, all of whom are private-sector accounting professionals. These members are elected to five-year terms as members and can be re-elected to a second five-year term but can only serve a maximum of 10 years. Upon accepting a position as a member, the person must immediately disassociate himself from the organization in which he worked.

• Financial Accounting Standards Board

• International Accounting Standards Board

• Securities and Exchange Commission

• Committee on Accounting Procedure

which of the equations is the correct one used for the Accounting Equation

• Assets = Liabilities + Owner's Equity

• Liabilities = Assets - Owner's Equity

• Owner's Equity = Assets + Liabilities

• Liabilities = Assets + Owner's Equity

A(n) _________ is something that a business owns.

• Liability

• Owner's Equity

• Assets

• Expenses

A(n) __________ is something that a business owes.

• Liability

• Asset

• Owner's Equity

• Revenue