Chapter 1, Problem 13EA

Match the terms that follow with the appropriate descriptions.

1. 1. Communication
2. 2. Business transactions
3. 3. Investors
4. 4. Financial Accounting Standards Board (FASB)
5. 5. Creditors
6. 6. Management
7. 7. Bookkeeping
8. 8. Securities and Exchange Commission (SEC)
9. 9. Money measure
10. 10. Sarbanes-Oxley Act
11. 11. Financial statements
12. 12. Management information system
    1. a. The recording of all business transactions in terms of money
    2. b. A process by which information is exchanged between individuals through a common system of symbols, signs, or behavior
    3. c. The process of identifying and assigning values to business transactions
    4. d. Legislation requiring CEOs and CFOs to swear that any reports they file with the SEC are accurate and complete
    5. e. Show how well a company is meeting the goals of profitability and liquidity
    6. f. Collectively, the people who have overall responsibility for operating a business and meeting its goals
    7. g. People who commit money to earn a financial return
    8. h. The interconnected subsystems that provide the information needed to run a business
    9. i. The most important body for developing and issuing rules on accounting practice, called Statements of Financial Accounting Standards
    10. j. An agency set up by Congress to protect the public by regulating the issuing, buying, and selling of stocks
    11. k. Economic events that affect a business’s financial position
    12. l. People or businesses to whom money is due