BusFin Ch 4 Vocabulary

Organizing a system of financial records, recording financial data, and preparing, analyzing, and interpreting financial statements

• Accounting cycle
• Accounting
• Accounting transaction
• Accounts

A series of steps performed to ensure the completeness and accuracy of accounting records and to prepare summary financial statements

• Accounting
• Accounting cycle
• Accounts
• Accounting transaction

The act of recording an activity that results in a change in value of an organization’s resource

• Accounting
• Accounting transaction
• Accounts
• Accounting cycle

The financial records for each of the specific assets, liabilities, and categories of owner’s equity

• Accounts
• Accounting cycle
• Accounting transaction
• Accounting

The accounting procedure that recognizes revenues and expenses when they are incurred rather than when cash is received or spent

• Benchmark company
• Annual report
• Chief executive officer
• Accrual accounting

A statement of a company's operating and financial performance issued at the end of its fiscal year

• Annual report
• Benchmark company
• Accrual accounting
• Chief executive officer

A competitor that has historically demonstrated outstanding financial performance used to establish financial performance goals

• Chief executive officer
• Accrual accounting
• Benchmark company
• Annual report

Charged with carrying out the strategy and policy of the board of directors

• Annual Report
• Chief executive officer
• Accrual accounting
• Benchmark company

Responsible for planning and managing a company’s financial resources

• Chief operating officer
• Debt financing
• Due care
• Chief financial officer

Directs the actual operations of the business

• Chief financial officer
• Due care
• Chief operating officer
• Debt financing