Term
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Definition
| the planned timing of revenues, expenses, gains, and losses to smooth out bumps in earnings |
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Term
| single step income statement |
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Definition
| consists of just two groupings: revenues and expenses (expenses deducted from revenues to arrive at net income) |
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Term
| sales/revenues, CGS, Selling expenses, Admin and general expenses |
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Definition
| operating section of the income statement includes: |
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Term
| other revenues and gains, other expenses and losses |
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Definition
| nonoperating section of the income statement includes: |
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Term
| operating section, nonoperating section, income tax, discontinued operations, extraordinary items, earnings per share |
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Definition
| sections of the income statement |
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Term
| (1) discontinued operations (2) extraordinary items (3) unusual gains/losses (4) changes in accouting principles (5)changes in estimates (6) correction of errors |
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Definition
| six general categories of irregular items |
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Term
| discontinued operation (one of the most common types of irregular items) |
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Definition
| when a company eliminates the relults of operations and cash flows of a component from its ongoing operations, and there is no significant continuing involvement in that component after the disposal transaction |
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Term
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Definition
| nonrecurring material items that differ significantly from a company's typical business activities. (unusual in nature and infrequent in occurrence. |
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Term
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Definition
| items that are unusual or infrequent but not both |
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Term
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Definition
| when a company recognizes a change in accounting principle by making changes to the financial statements. |
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Term
| intraperiod tax allocation |
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Definition
| the process of allocating income tax costs to periods.."let the tax follow the income" |
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Term
| net income-preferred dividends/weighted average of common shares outstanding |
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Definition
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Term
| appropriated retained earnings |
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Definition
| r/e restricted to comply with contractual requirements, board of director's policy, or current necessity |
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Term
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Definition
| the ability of a company to pay its debts as they mature |
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Term
| (1) historical cost (2) judgements and estimates (3) omits many items of financial value like customer base, and reputaion |
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Definition
| limitations of the balance sheet |
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Term
| current assets, long term assets, PPE, intangibles, other assets |
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Definition
| classifications of assets |
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Term
| current liabilities, long term debt, owners equity (capital stock, paid in capital, R/E) |
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Definition
| classifications of liabilities and stockholder's equity |
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Term
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Definition
| cash and other assets a company expects to convert into cash, sell, or consume either in one year or in the operating cycle, whichever is longer |
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Term
(1) useful in making investment, credit, and similar decisions
(2) useful in assessing the amounts, timing and uncertainty of future cash flows
(3)learn about enterprise resources, the claims to them and the changes in them |
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Definition
| objectives of financial reporting |
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Term
| International financial reporting standards |
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Definition
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Term
| it enhances comparability between companies financial statements, and gives investors more confidence in what they are reading. also it provides a framework for solving new and emerging problems and questions |
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Definition
| why do we need a conceptual framework? |
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Term
1.useful in investment and credit decisions
2.useful in assessing cash flow prospects
3.about enterprise resources, claims to those resources, and changes in them. |
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Definition
| What are the primary objectives of financial reporting |
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Term
| (1) materiality (2) cost benefit relationship (3) conservatism (4) industry practices |
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Definition
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Term
| (1) revenue recognition (2) matching (3) historical cost (4) full disclosure |
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Definition
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Term
| (1) economic entity (2) going concern (3) periodicity (4) monetary unit |
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Definition
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