ACCT 2121 CHAPTER 1 KEY TERMS

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ACCT 2121 CHAPTER 1 KEY TERMS Accounting The information system that identifies, records, and communicates the economic events of an organization to interested users. Annual report A report prepared by corporate management that presents financial information including financial statements, a management discussion and analysis section, notes, and an independent auditor's report. Assets Resources owned by a business. Auditor's report A report prepared by an independent outside auditor stating the auditor's opinion as to the fairness of the presentation of the financial position and results of operations and their conformance with generally accepted accounting principles. Balance sheet A financial statement that reports the assets and claims to those assets at a specific point in time. Basic accounting equation Assets=Liabilities+Stockholders' Equity. Certified public accountant (CPA) An individual who has met certain criteria and is thus allowed to perform audits of corporations. Common stock Term used to describe the total amount paid in by stockholders for the shares they purchase. Corporation
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