The Accounting Industry ICEV vocab

Process of retrieving, storing and summarizing financial transactions

• bookkeeping

• accounting

• computerization

• filing systems

maintaining accounting records by hand

• journalizing

• computerized accounting

• manual accounting system

• bookkeeping

person who has an interest in a company

• employee

• owner

• stakeholder

• all of the above

amount earned is greater than the amount spent

• debt

• liability

• loss

• profit

form of accounting which produces information for external use through financial statements

• financial accounting

• managerial accounting

• tax accounting

• bookkeeping

produces information mainly for company/management use

• financial accounting

• managerial accounting

• tax accounting

• bookkeeping

accounting method used to record tax transactions

• financial accounting

• managerial accounting

• tax accounting

• bookkeeping

common set of accounting rules and procedures; needed in accounting to maintain accuracy and consistency of financial reports

• IRS laws

• financial reporting

• Generally accepted accounting practices (GAAP)

• disclosure principle

actual cost of an item needs to be stated, not its current value

• cash principle

• average principle

• cost principle

• replacement principle

accountants must only record information which can be verified

• disclosure principle

• GAAP

• reliability principle

• cost principle