IndietroFinancial Accounting Key Concepts
Termini in questo insieme (27)
The accounting equation is \(\text{Assets} = \text{Liabilities} + \text{Equity}\). It represents the relationship between a company's resources and claims on those resources.
An asset is a resource owned or controlled by a company that is expected to provide future economic benefits.
A current asset is an asset expected to be converted into cash or used up within one year or the operating cycle, whichever is longer.
A liability is a present obligation of the company arising from past events, expected to result in an outflow of resources.
A current liability is a debt or obligation due within one year or the operating cycle, whichever is longer.
Equity represents the residual interest in the assets of the entity after deducting liabilities; it includes common stock and retained earnings.
The going-concern assumption assumes that a company will continue to operate indefinitely and not liquidate in the near future.
The continuity assumption means the business will continue its operations without interruption for the foreseeable future.
GAAP are the standard framework of guidelines for financial accounting used in the U.S., including rules and procedures.
The FASB establishes and improves financial accounting and reporting standards in the U.S. to provide useful information to investors and creditors.
Gross profit is the difference between net sales and the cost of goods sold, showing profit before operating expenses.
Dividends are distributions of a company's earnings to its shareholders, usually in cash or additional stock.
A deficit occurs when expenses and losses exceed revenues and gains, resulting in negative retained earnings.
An external auditor is an independent professional who examines financial statements to ensure accuracy and compliance with accounting standards.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.
Financial statements are formal records of a company's financial activities, including the balance sheet, income statement, and cash flow statement.
Financing activities include transactions involving debt, equity, and dividends that affect the company’s capital structure.
A financial analyst evaluates financial data to help businesses and investors make informed decisions.
Common stock represents ownership shares in a corporation, giving shareholders voting rights and a claim on profits.
The GRI provides standards for sustainability reporting, helping organizations communicate their environmental, social, and governance (ESG) impacts.
CSR refers to a company’s commitment to manage its social, environmental, and economic effects responsibly.
Expenses are the costs incurred in the process of earning revenue, reducing equity.
An entity is any organization or person for which financial statements are prepared, treated separately from its owners.
A CPA is a licensed accounting professional qualified to perform audits, tax, and consulting services.
A CMA specializes in financial management and strategic business assessment within organizations.
A CIA is a professional who evaluates internal controls and risk management processes within an organization.
A CFE specializes in detecting and preventing fraud within organizations.