Shared Flashcard Set

Details

Second Exam
cash flow
44
Accounting
Undergraduate 1
11/09/2009

Additional Accounting Flashcards

 


 

Cards

Term
SEC
Definition
protects investors and maintains the integrity of the securities market
Term
CEO
Definition
the highest officer in the company
Term
CFO
Definition
the highest officer associated with the financial and accounting side of business
Term
Accounting staff
Definition
actually prepare the details of the financial reports
Term
Board of directors
Definition
elected by the shareholders to represent their interest; responsible for maintaining the integrity of the company's financial reports
Term
Unqualified audit opinion
Definition
auditor's statement that the financial statements are fair presentations in all material respects in the conformity with GAAP
Term
Financial analyst
Definition
receive accounting reports and other information about the company from electronic information services
Term
Earnings forecast
Definition
predictions of earnings for future accounting periods
Term
Market efficiency
Definition
a quick, unbiased reaction to information in finance
Term
Information services
Definition
allows investors to gather their own information about the company and monitor the recommendations of a variety of analysts
Term
Institutional investors
Definition
managers of pension, mutual, endowment, and other funds that invest on the behalf of others
Term
Lender (creditor)
Definition
financial institution or supplier that lends money to the company
Term
Independent auditor
Definition
independent CPA who examines financial statements and attests to their fairness
Term
Private investors
Definition
include individuals who purchase shares in companies
Term
Relevancy
Definition
be capable of making a difference in decisions
Term
Reliability
Definition
can be relied upon, is accurate, unbiased and verifiable
Term
Consistent information
Definition
can be compared over time because similar accounting methods have been applied (over time)
Term
Comparable information
Definition
allows comparisons across businesses because similar accounting methods have been applied (across businesses)
Term
Cost-benefit constraint
Definition
suggests that the benefits of accounting for and reporting information should outweigh the costs
Term
Materiality
Definition
relatively small amounts not likely to influence decisions are to be recorded in the most cost-beneficial way.
Term
Industry practices
Definition
industry-specific measurements and reporting deviations may be acceptable
Term
Conservatism
Definition
exercise care not to overstate assets and revenues or understate liabilities and expenses
Term
Material amounts
Definition
amounts that are large enough to influence a user's decision
Term
Historical cost
Definition
cash equivalent price on the transaction date is used initially to measure elements
Term
Revenue recognition
Definition
record when measurable, realizable, and earned (evidence of customer payment arrangement exists, price is determinable, and collection is reasonably assured
Term
Matching
Definition
record when expenses are incurred to generate revenues
Term
Full disclosure
Definition
provide information sufficiently important to influence a decision
Term
Separate entity
Definition
activities of the business are separate from activities of the owners
Term
Unit of measure
Definition
accounting measurements will be in the national monetary unit
Term
Continuity
Definition
entity will not go out of business in the near future
Term
Time period
Definition
the long life of a company can be reported over a series of shorter time periods
Term
Press release
Definition
a written public news announcement
Term
Unexpected earnings
Definition
the difference between expected earnings and actual earnings
Term
Annual report
Definition
relatively simple documents photocopied on white bond paper
Term
Form 10-K
Definition
the annual report the publicly traded companies must file with the SEC
Term
Form 10-Q
Definition
the quarterly report that publicly traded companies must file with the SEC
Term
Form 8-K
Definition
used by publicly traded companies to disclose any material event not previously reported that is important to investors
Term
Quarterly report
Definition
summarized income statement information for the quarter
Term
Intangible assets
Definition
have no physical existence and a long life
Term
Par value
Definition
a legal amount per share established by the board of directors
Term
Gross profit (gross margin)
Definition
net sales minus the cost of goods sold
Term
Income from operations (operating income)
Definition
net sales minus the cost of goods sold and other operating expenses
Term
Pretax earnings
Definition
revenues minus all expenses except income tax expense
Term
Cash equivalent
Definition
a short-term, highly liquid investment with an original maturity of less than three months
Supporting users have an ad free experience!