@managerial finance@ -- Chapter 2 #Generally accepted accounting principles (GAAP)-- the practice and procedure guidelines used to prepare and maintain financial records and reports; authorized by the Financial Accounting Standards Board (FASB). #Financial Accounting Standards Board (FASB)-- the accounting profession's rule setting body, which authorizes generally accepted accounting principles (GAAP). #Public Company Accounting Oversight Board (PCAOB)-- a nonprofit corporation established by the Sarbanes-Oxley Act of 2002 to protect the interests of investors and further the public interest in the preparation of informative, fair, and independent audit reports. #Securities and Exchange Commission (SEC)-- the federal regulatory body that governs the sale and listing of securities stockholders report-- annual report that publicly owned corporations must provide the stock orders; it summarizes and documents the firm's financial activities during the past year letter to stockholders-- typically, the first element of the annual stockholders report and the primary communication for management. #Income statement-- provides a financial summary of the firm's operating results during a specified period. #Dividend per share (DPS)-- the dollar amount of cash distributed during the period on behalf of each outstanding share of common stock. #Balance sheet-- summary statement of the firm's financial position at a given point in time. #Current assets-- short-term assets, expected to be converted into cash within one year or less. #Current liabilities-- short-term liabilities, expected to be paid within one year or less. #Long-term debt-- debts for which payment is not do in the current year paid in capital in excess of par-- the amount of proceeds in excess of the par value received from the original sale of common stock. #Retained earnings-- the cumulative total of all earnings, net of dividends, that have been retained and reinvested in the firm since its inception. #Statement of stockholders equity-- shows all equity account transactions that occurred during a given year. #Statement of retained earnings-- reconciles the net income earned during a given year, and any cash dividends paid, with the change in retained earnings between the start and the end of that year ( an abbreviated form of the statement of stockholders equity). #Statement of Cash flows-- provides a summary of the firms operating, investment, and financing cash flows and reconciles them with changes in its cash and marketable securities during the period Notes to the financial statements-- footnotes detailing information on the accounting policies, procedures, calculations, and transactions underlying entries in the financial statements.