Accounting Basics Vocab

Individuals and other enterprises that have a financial interest in the reporting enterprise but that are not involved in the day to day operations of that enterprise.

• External Users

• Internal Users

• Auditors

• All of the above

The payment of an amount for using another’s money

• Return on Investment

• Return of Investment

• Cash Flow

• None of the above

A clerical dimension of accounting that includes recording the routine transactions and day to day record keeping.

• Accounting

• Recording

• Bookkeeping

• Managerial Accounting

Individuals who use accounting information from within an organization.

• External Users

• Internal Users

• Internal and External users

• Auditors

This statement shows the financial position of an enterprise by summarizing its assets , liabilities, and owner’s equity

• Income Statement

• Cash Flow Statement

• Balance Sheet

• Financial Statement

An activity statement that shows details and results of the company’s profit-related activities

• Income Statement

• Balance Sheet

• Cash Flow Statement

• None

A declaration of information believed to be true and communicated in monetary terms.

• Balance Sheet

• Cash Flow Statement

• Financial Statement

• Trial Balance

Providing information about the financial resources, obligations, and activities of an economic entity that is intended for use primarily by external decision makers

• Managerial Accounting

• Financial Accounting

Providing information that is intended primarily for use by internal management in decision making required to run the business.

• Financial Accounting

• Managerial Accounting

Principles that provide a framework for determining what information is to be included in financial statements and how it should be prepared and presented.

• GAAP

• SEC

• IASB