Basic ecomonic terminology. Искренко Э.В - 41 стр.

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                  ACCOUNTING

       1. Accounting — the process of systematically collecting, analyzing,
and reporting financial information.
       2. Auditing — checking the accuracy of records.
       3. Audit — an accountant’s examination of a company’s financial
records to determine if it used proper procedures to prepare its
financial reports.
       4. Financial accounting — a «scorekeeping» process that is meant
to keep several interested groups (inside and outside the firm)
informed of the financial condition of the firm.
       5. Managerial accounting — serves the firm’s managers by calling
attention to problems and aiding them in planning, decision making,
and controlling the firm’s operations.
       6. Product cost accounting — an accounting system that allocates
costs to the various products made by a firm.
       7. Responsibility accounting — an accounting system for
classifying costs or charging them to certain responsibility centers
so as to allow the performance of such centers (and their managers)
to be evaluated.
       8. Bookkeeping — the accurate day-to-day recording of all the
financial transactions that occur in an organization; the initial step
in the accounting process.
       9. Accounting cycle — the sequence of accepted procedures
that accountants must follow over a specific period of time.
       10. Account — an individual written record for specific assets,
liabilities, owners’ equity, revenues, and expenses.
       11. Transaction — a financially significant event that either
increases or decreases the value of an account.
       12. Debit — in bookkeeping, any transaction that increases
assets or decreases liabilities or owner’s equity; always entered in
the left column.
       13. Credit — in bookkeeping, any transaction that decreases
assets or increases liabilities or owner’s equity; always entered in
the right column.
       14. Basic accounting equation — a mathematical statement of
the balance between what a firm owns, what it owes, and what its
owners’ equity is.
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