FHNW - Financial Accounting - Glossary Chapter 01 + 02
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The information system that identifies, records, and communicates the economic events of an organization to interested users. (p. 4).
Resources a business owns. (p. 12).
The examination of financial statements by an independent accountant in order to express an opinion as to the fairness of presentation. (p. 27).
Basic accounting equation
Assets = Liabilities + Equity. (p. 12).
A part of accounting that involves only the recording of economic events. (p. 4).
Comprehensive income statement
A financial statement that presents items that are not included in the determination of net income, referred to as other comprehensive income. (p. 22).
Effort to reduce differences between U.S. GAAP and IFRS to enhance comparability. (p. 8).
A business organized as a separate legal entity under corporation law, having ownership divided into transferable shares. (p. 10).
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