Glossary of Business and Accounting Terms, Quizzes of Accounting

Download Glossary of Business and Accounting Terms and more Quizzes Accounting in PDF only on Docsity! TERM 1 Audit Committee DEFINITION 1 A subcommittee of the board of directors that is responsible for overseeing both the internal audit function and the annual financial statement audit by individual CPAs TERM 2 Board of Directors DEFINITION 2 The body elected by shareholders to oversee the company TERM 3 Budget DEFINITION 3 Quantitative expression of a plan that helps managers coordinate and implement the plan TERM 4 Certified Management Accountant (CMA) DEFINITION 4 A professional certification issued by the IMA to designate expertise in the areas of managerial accounting, economics, and business finance TERM 5 Chief Executive Officer (CEO) DEFINITION 5 The position hired by the board of directors to oversee the company on a daily basis TERM 6 Chief Financial Officer (CFO) DEFINITION 6 The position responsible for all the company's financial concerns TERM 7 Chief Operating Officer (COO) DEFINITION 7 The position responsible for overseeing the company's operations TERM 8 Controller DEFINITION 8 The position responsible for general financial accounting, managerial accounting, and tax reporting TERM 9 Controlling DEFINITION 9 One of management's primary responsibilities; evaluating the results of business operations against the plan and making adjustments to keep the company pressing toward its goals TERM 10 Cost-Benefit Analysis DEFINITION 10 Weighing costs against benefits to help make decisions TERM 21 Lean Thinking DEFINITION 21 A philosophy and business strategy of operating without waste TERM 22 Planning DEFINITION 22 One of management's primary responsibilities; setting goals and objectives for the company and deciding how to achieve them TERM 23 Sarbanes-Oxley Act of 2002 (SOX) DEFINITION 23 A congressional act that enhances internal control and financial reporting requirements and establishes new regulatory requirements for publicly traded companies and their independent auditors TERM 24 Sustainability DEFINITION 24 The ability to meet the needs of the present without compromising the ability of future generations to meet their own needs TERM 25 Throughput Time DEFINITION 25 The time between buying raw materials and selling finished products TERM 26 Treasurer DEFINITION 26 The position responsible for raising the firm's capital and investment funds TERM 27 Triple bottom line DEFINITION 27 Evaluating a company's performance not only by its ability to generate economic profits, but also on its impact on people and the planet TERM 28 Total Quality Management (TQM) DEFINITION 28 A management philosophy of delighting customers with superior products and services by continually setting higher goals and improving the performance of every business function TERM 29 What are 3 kinds of decision making managers do? DEFINITION 29 1. Planning2. Directing3. Controlling TERM 30 What is the primary purpose and focus of managerial accounting? DEFINITION 30 Provide information that helps managers plan, direct, and control operations and make better decisions; it has a -future orientation -focus on relevance to business decisions TERM 31 How do managers design a company's managerial accounting system DEFINITION 31 So that the benefits outweigh the costs of the system TERM 32 What skills should management accountants possess? DEFINITION 32 1) Financial and managerial accounting knowledge2) analytical skills3) knowledge of how a business functions5) ability to work on teams6) written and oral communication skills TERM 33 IMA's ethical principles DEFINITION 33 1) Honesty2) Objectivity3) Fairness4) Responsibility TERM 34 IMA's ethical standards DEFINITION 34 1) Competence2) Integrity3) Confidentiality4) Credibility TERM 35 What companies must comply with SOX? DEFINITION 35 Publicly traded companies