Term
Income from Continuing Operations |
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Definition
1. Revenues 2. Expenses 3. Gains/Losses 4. Income Tax Expense |
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Definition
Inflows resulting from providing goods/services |
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Definition
Outflows incurred in generating revenues |
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Term
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Definition
Inc/Dec in equity from peripheral/incidental transacations |
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Definition
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Rev/Exp related to principal revenue-generating activities |
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Definition
Gains/Losses & Rev/Exp related to peripheral or incidental activities |
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Term
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Definition
Ability of reported earnings to predict future earnings |
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Term
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Definition
1. Income Shifting 2. Income Statement Classification |
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Term
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Definition
Shutdown or relocation of facilities or downsizing of operations |
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Term
Goodwill Impairment & Long-Lived asset impariment |
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Definition
impairment losses or changes |
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Term
Nonoperating income/earnings quality |
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Definition
gains/losses generated from sale of investments can inflate/deflate current earnings |
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Term
Separately Reported Items |
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Definition
1. Discountinued Operations 2. Extraordinary Items
Net of taxes |
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Term
Reporting for COmponents Sold |
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Definition
Gain/Loss on disposal of assets |
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Term
Reporting for Components Held for Sale |
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Definition
"impairement loss" if carrying value>(fair value-cost to sell) |
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Term
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Definition
1. Unusual in nature 2. Infrequent in occurrence
net of related taxes |
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Term
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Definition
if not BOTH included as separate items in continuing operations |
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Term
Accounting Principle Change |
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Definition
One GAAP method to another
- LIFO to FIFO |
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Term
Accounting Estimate Change |
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Definition
Revision of estimate after new information
- Revision of previous estimate 2. use new estimate in current and future 3. depreciation, amortization, depletion |
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Term
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Definition
Fin. Statement Prep for other accounting entity |
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Term
Accounting Errors (same year |
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Definition
Reverse original entry and record appropriately |
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Term
Accounting Errors (subsequent years) |
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Definition
- record prior period adjustment to beginning RE balance of SE - previous incorrect fin. statements retrospectively restated to reflect correction |
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Term
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Definition
Amount of income earned by a company expressed on a per share basis
BASIC: (NI-Pref Div)/(weighted avg # of common shares) |
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Term
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Definition
-Provides relecant information about cash receipts/disbursements -helps investors/creditors asses 1. future net cash flows 2. liquidity 3. lt solvency -required for each income stmnt period reported |
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Term
Operating Activities CASH FLOWS |
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Definition
INFLOWS 1. sales 2. int/div received
OUTFLOWS 1. inventory purchase 2. salaries, wages, op expenses 3. debt interest 4. income taxes |
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Term
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Definition
Reports cash effects of each operating activity |
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Term
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Definition
Starts with accrual NI and converts to cash basis |
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Term
Investing Adtivities CASH FLOWS |
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Definition
INFLOWS 1. sale of long-lived asset 2. sale of investment securities 3. collection of nontrade receivables
OUTFLOWS 1. long-lived asset purchase 2. purchase of investment 3. loans to other entities |
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Term
Financing Activities CASH FLOWS |
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Definition
INFLOWS 1. sale of shares to owners 2. borrowing from creditors
OUTLFOWS 1. owners in the form of div 2. owners for reacquisition of shares 3. creditors as repayment of debt |
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