| Accounting | Information and measurement system that identifies, records, and communicates relevant information about a company's business activities.
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| Business entity assumption | Concept that assumes a business will be accounted for separately from its owner(s) and any other entity.
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| Corporation | Business that is a separate legal entity under state or federal laws with owners called shareholder or stockholders.
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| Ethics | Codes of conduct by which actions are judged as right or wrong, fair or unfair, honest or dishonest.
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| External users | Persons using accounting information who are not directly involved in running the organization.
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| Financial accounting | Area of accounting mainly aimed at serving external users.
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| Financial Accounting Standards Board (FASB) | Independent group of full-time members responsible for setting accounting rules.
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| Generally accepted accounting principles (GAAP) | Rules that specify acceptable accounting principles.
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| Internal users | Persons using accounting information who are directly involved in managing the organization.
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| International Accounting Standards Board (IASB) | Group that identifies preferred accounting practices and encourages global acceptance; issues International Financial Reporting Standards (IFRS).
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| Managerial accounting | Area of accounting mainly aimed at serving the decision-making needs of internal users; also called management accounting.
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| Manufacturing business | A business that makes products for sale.
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| Merchandising business | A business that buys goods from manufacturers and then sells them to consumers.
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| Partnership | Unincorporated association of two or more persons to pursue a business for profit as co-owners.
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| Proprietorship | Business owned by one person that is not organized as a corporation.
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| Recordkeeping | Part of accounting that involves recording transactions and events, either manually or electronically; also called bookkeeping.
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| Sarbanes-Oxley Act | Created the Public Company Accounting Oversight Board, regulates analyst conflicts, imposes corporate governance requirements, enhances accounting and control disclosures, impacts insider transactions and executive loans, establishes new types of criminal conduct, and expands penalties for violations of federal securities laws.
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| Securities and Exchange Commission (SEC) | Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.
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| Service business | A business that provides services to customers.
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| Shareholders | Owners of a corporation; also called stockholders.
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