Matching Definitions with Terms or Abbreviations
Match each definition with its related term or abbreviation by entering the appropriate letter in the space provided.
Term or Abbreviation
(1) SEC
(2) Audit
(3) Sole proprietorship
(4) Corporation
(5) Accounting
(6) Accounting entity
(7) Audit report
(8) Cost principle
(9) Partnership
(10) FASB
(11) CPA
(12) Unit of measure
(13) GAAP
(14) Publicly traded
Definition
A. A system that collects and processes financial information about an organization and reports that information to decision makers.
B. Measurement of information about an entity in terms of the dollar or other national monetary unit.
C. An unincorporated business owned by two or more persons.
D. The organization for which financial data are to be collected (separate and distinct from its owners).
E. An incorporated entity that issues shares of stock as evidence of ownership.
F. Initial recording of financial statement elements at acquisition cost.
G. An examination of the financial reports to ensure that they represent what they claim and conform with generally accepted accounting principles.
H. Certified public accountant.
I. An unincorporated business owned by one person.
J. A report that describes the auditor’s opinion of the fairness of the financial statement presentations and the evidence gathered to support that opinion.
K. Securities and Exchange Commission.
L. Financial Accounting Standards Board.
M. A company with stock that can be bought and sold by investors on established stock exchanges.
N. Generally accepted accounting principles.