CPA Glossary

• Stock Certificate
  A written instrument that shows ownership of shares in a corporation.
  
• Stock
  Capital of a corporation that is divided into portions or shares. Stock refers to an equity or ownership interest in a corporation. There may be several classes of stock in a corporation, each class divided into equal portions or shares. Ownership of shares is demonstrated by stock certificates. See Share.
  
• Statement of Retained Earnings
  A financial statement summarizing the changes in retained earnings for a stated period. Also known as Statement of Changes in Capital Accounts or Statement of Changes in Retained Earnings and Reserves.
  
• Statement of Financial Position
  See Balance Sheet.
  
• Statement of Earnings
  See Income Statement.
  
• Statement of Changes in Financial Position
  A financial statement showing the effect of operating, financing and investing activities effecting the cash position of the company. Also known as Cash Flow Statement, Statement of Cash Flow, Statement of Operating, Financing and Investing Activities, or Statement of Changes in Cash Resources.
  
• Statement
   Summary of an account for a period of time (usually one month) showing invoices, credits and balance due. A statement is provided to a customer by a supplier.
  
• Stated Capital
  The par value of shares multiplied by the number of shares outstanding. The amount of stated capital may effect the ability to pay dividends.
  
• Sole Proprietorship
   A business carried on by the owner as an individual. The owner of a sole proprietorship is personally liable for all business debts; thus, personal property could be taken to pay business debts. A Sole Proprietorship is an unincorporated business wholly owned by one individual.
  
• Share
  An interest in a corporation. The total ownership of a corporation is divided into shares of stock. See Stock
  
• Shareholder
  Any holder of one or more shares in a corporation. A shareholder usually has evidence that they are a shareholder. This evidence is represented by a stock certificate.
  
• Security
  Collateral for a debt (for example, accounts receivable may be pledged as security for a loan). Security is a generic term used to refer to a bond, share certificate or other medium or long-term investment evidencing debt or ownership.
  
• S Corporation
  A small corporation which elects subchapter S tax treatment. This tax treatment allows the corporation to avoid federal level taxation. Corporate Profits and Losses are passed through to the shareholders.
  
• Risk
  Possibility that the actual return on an investment will be less than its expected return
  
• Review Engagement Report
  The accountant's report that prefaces un-audited financial statements and provides negative assurance that the financial information conforms to generally accepted accounting principles.
  
• Review Engagement
  The un-audited review of financial statements of a business or organization by an independent accountant for the purpose of determining the plausibility of the information reported on. A review includes making inquiries concerning financial, operating and contractual information, applying analytical procedures and having discussions with appropriate officials of the enterprise.
  
• Revenue
   Gross proceeds from sale of goods or services. Also, interest and dividends earned on investments. Revenue is a source of income.
  
• Resolution
  A resolution is a formal decision of the corporation that has been adopted by either the shareholders or the board of directors.
  
• Retained Earnings
  Cumulative net incomes of a corporation less losses and dividend distributions to shareholders (profits not distributed).
  
• Registered Office
  The office named in the articles of incorporation. The registered office must be where the registered agent is located, and need not be the principal office or place of business of the corporation.