Problem Solving Survival Guide to accompany Financial Accounting, 8th Edition

EXERCISE 1-6

Purpose:

(L.O. 1 thru 9) This exercise will quiz you about terminology used in this chapter.

A list of accounting terms with which you should be familiar appears below.

Accounting	International Accounting Standards Board (IASB)
Assets	International Financial Reporting Standards (IFRS)
*Auditing	Liabilities
Balance sheet	*Management consulting
Basic accounting equation	Managerial accounting
Bookkeeping	Monetary unit assumption
Common stock	Net income
Corporation	Net loss
Cost principle	Owners' equity
Dividend	Partnership
Economic entity assumption	*Private (or managerial) accounting
Ethics	Proprietorship
Expanded accounting equation	*Public accounting
Expenses	Relevance
Fair value principle	Retained earnings statement
Faithful representation	Revenues
Financial accounting	Sarbanes-Oxley Act of 2002 (SOX)
Financial Accounting Standards Board (FASB)	Securities and Exchange Commission (SEC)
*Forensic accounting	Statement of cash flows
Generally accepted accounting principles	Stockholders' equity
(GAAP)	*Taxation
Income statement	Transactions

^*These items appear in the Appendix to Chapter 1 in the text.

Instructions

For each item below, enter in the blank the term that is described.

1. _____________________________________The information system that identifies, records, and communicates the economic events of an organization to interested users.
2. _____________________________________An accounting principle that states that ...