73 Matching questions
- Balance Sheet Relations
- Codification project
- U.S. SEC Registrant
- Natural business year
- Shareholder's equity
- When is a firm's fiscal year differ from a calandar year?
- Governing Board
- Current Liabilities
- Noncurrent Assets
- Net Loss
- Retained earnings
- Audit opinion
- Shareholder Equity
- Accounting period convention, reporting period
- Retained Earnings
- Managment's Discussion and Analysis (MD&A)
- Current amount
- Statemenet of Shareholds' Equity
- Cash Flow Relations
- In what sense are a firm's accounts receivable a source of financing for that firm's customers?
- Monetary amount
- Matching convention
- Fiscal year
- Accrual Basis of Accounting
- Financial reporting process
- Statement of Cash Flows
- Who Prepares a firm's financial statements?
- Current Assets
- Current Amount
- Conceptual framework
- Shareholds, stockholders
- Reporting items on firm's balance sheet:
Historical amounts or Current amounts
- FASB - Conceptual Framework
- Investing activities
- Sarbanes-Oxley Act
- Noncurrent Liabiliites and
- Income Statement
- Statements of Financial Accounting Standards
- Opertating activities
- Annual report to shareholders
- Cash Basis of Accounting
- Net Income
- Retained Earnings Relations
- Historical amount
- Balance Sheet
- Two successive balance sheets for:
Statement of Cash Flows
- Long-term creditors
- Goals contrasted with strategies
- Capital expenditures
- Publicly traded
- Ballance Sheet
Looks at resources from two angles
- Financial Reporting Process involves:
- financial statments
- Historical Amount
- a Calandar year ends on December 31.
Fiscal year ends on a date that is determined by the firm, based on its buisness model.
- b 1. Objectives of financial reporting
2. Qualitative charateristics of accounting information
3. Elements of financial statements
4. Recognition and measurement principles
- c + Cash at Beginning
+ Cash Flow from Operations
+ Cash Flow from Investing
+ Cash Flow from Financing
+Cash at End
- d Assets
Other Current Assets
Total Current Assets
Property, Plant and Equiopment
Other Noncurrent Assets
Liabilities and Shareholder Equity
Current Long Term Debt
Other Current Liabilities
Total Current Liabilities
Long Term Debt
Other Noncurrent Liabilities
Total Shareholders' Equity
Total Liabilities and Shareholders Equity
- e Pronouncements by the FASB issued is a compilation of US GAAP
- f cash and ssets that firm expects to turn into chs within one year
- g (statement of profit and loss)
terms of Net Income, Earnings and Profit are interchangeable
Provides information on profitability
Reports amounts for a period of time (the reporting period)
- h Firm
recognizes revenue when a good is sold or renders services and
recognizes expenses in the period when the firm recognizes the revenues
that the costs helped produce.
Attempts to match expenses with associated revenues.
Better performance mesurement because it accurately reflects the expenses more closesly match reported revenues.
Most used for:
- merchandising and manufacturing activities
- i The concept of recognizing cost expirations in the same accounting period during which the firm recognizes relted revenues; combining or simultaneously recognizing the revenues and expenses that jointly result fro the same transactions.
- j Public Company Accounting Oversight Board
- k measure the outlfow of assets used in generating revenues
means that an asset decreases or a liability increases
- l oblicgations a firm expects to pay within one year
- m A firm incorporated based in the US that lists and trades its securitdies in the US.
- n Board of Directors
- o optaining resources from:
- owners and providing them with a return on and a return of thier investment
- creditors and repaying amounts borrowed
- p Teh concept that should disclose seperately only those events that are relatively importatnt for the business.
- q Net income over the life of a corporation less all dividients.
Owner's equity less contributed capital.
- r expenses for a period exceed revenues
- s Assets the firm currently holds
Assets = Liabilities + Shareholder's equity
Claims of creitors and owners who provided funds
Investing = Financing
Resources = Sources of Resources
Resources = Claims on Resources
- t Accounts recievable represent amounts owed by customers for goods and services they have already recieved.
Customer has the benefit of the goods before it pays cash.
- u Managers and governing boards of reporting entities select from accounting principles provided by standard setters and regulatory bodies and prepare financial statments, which independent external auditors attest to, to enable users of financial statments to make informed decisions.
- v current value as of the balance sheet date
- w measusre the inflows of assets from selling goods / services to customers
- x International Financial Reporting Standards
- y The time period between consecutive balance sheets; the time period for which the firm prepares financial statements that measure flows, such as the income statement and the statement of chas flows.
- z The qualitative characteristic of accounting information that firms record like transactions and events similarly.
- aa A distribution of assets generatred from earnings to owners of a corporation.
- ab One who owns a share
- ac Measuring unit
- ad - Managers and govering boards of reporting entities
- Accounting standard setters and reg. bodies
- Independent external auditors
- Users of financial statements
- ae Net Income = revenues - expenses
- af Report prepared once a year for shareholders:
- balance sheet
- income sttement
- statement of cash flows
- audito's report
- comments from managment
- ag Teh accounting practice of delayin the reconition of gains and losses from changes in teh market price of assets until the firm sells the assets.
- ah Provide funds that the firm must repqy, typ. with interest, in specific amounts at specific dates.
- ai 1. Balance sheet - firm's financial position
2. Income statement - firm's profitiability
3. Statment of cash flows - firm's cash-generating activity
4. Statement of retained earnings - shareholder's equity
- aj displays componants of shareholders' equity; including common shares and retainned earnings
- ak Represents the Net Assets (= total assets - total liabilities)
- al + Retained Earnings
+ Net Income
- Dividends Declared
- am + Current Assets
+ Noncurrent Assets
+ Current Liabilities
+ Noncurrent Liabilities
+ Share-holders Equity`
- an The auditor's report containing an attestation or lack thereof
- ao To enter a transaction in the accounts; contract with realize
- ap acquisition costs of assets or amount of funds orginally obtained from creditors or owners
- aq International Accounting Standards Board
- ar Income
statment - connects two successive balance sheets through effect on
retained erarnings Net Income that is not paid to shareholders as
dividends increased retained earnings.
Statement of Cash Flow - connects two successive balance sheets because it explains the change in cash from operationg, financing, and investing activities.
- as (outlay) An expenditure to acquire long-term assets.
- at Period of 12 consecutive months chosen by a buisiness as the accounting period for annual reports, not necessaritly a natural buisness year or calendar year.
- au FASB major pronouncements form - have a title and number
- av A 12-month period chosen as the reporting period so that the end of the period coincides with a low point in activitiy or inventories.
- aw typically held and used for several years (land, buildigns, euipment, patents, long-term investments in securities)
- ax Historical amounts - reflect the the amount at which items entered the firm's balance sheet; the aquisition cost of inventory.
Current amounts - reflect values at the balance sheet date; so they reflect current economic conditions.
Historical is amount paid to obtain the inventory and current is the amount for what it can be sold for today.
- ay A
discussion of managment's views of the company's performance; required
by the SEC to be included in annual report to shareholders.
Items commented: liquidity, operations, segments and effects of inflation.
- az Goal = an ending position
Strategy = process of getting from the current position to the goal
- ba description of firms whose securities trade in active markets or the securities themselves
- bb Economic resources to provide future economic benifits to a firm (buildings and equipmenet)
- bc Proprietorshiop or owners' equity of a corporation
- bd Creditors claims for funds; ussally because goods or services have been provided
Firm has previously recieved benifits for which it must pay a specified amount on a specified date
- be sources of funds where supplier of funds does not expect to recive them all back within the next year.
- bf Generally Accepted Accounting Principles
- bg Management, under the oversight of the firm's govering board.
- bh Firm measure performance from selling goods / services as it recieves cash from customers
Performance measurement does not include cash reciepts from financing activities.
Most used for:
- computing personal income
- firms with medium-term assets / no long-term
- professional services who have no investments in inventories
- bi Securities and Exchange Commission
- bj reports informtion about cash generated from operating, investing, and financing activities during specified time periods
explains change in chas between the beginning and end of the period; and seperately diplays changes in catagories
- bk All transactions and events that are neither financing activities nor investing activities
- bl Aquisition cost; orginal cost; a sunk cost
- bm Amounts of funds owners have provided and thier claims on the assets of a firm
- bn A coherent system of interrelated objectives and fundamentals, promulgated by the FASB primarily though its SFAC publications; intended to lead to consistent standars for financial accounting and reporting.
- bo Valuation or basis using fair values or market values as of the balance sheet date.
- bp The intention of the FASB to eleminate difference betwen US GAAP and IFRS
- bq Acquiring and selling securities or productive assets expected to produe revenue over several periods.
- br (2002) Law in wake of Enron, WorldCom and other scandals.
Stiffens the requirments for corporate governance, including accoutin issues.
Standards for audit committees of public companies, the certifications managments must sign, and standards of internal control that companies must meet.
- bs Financial Accounting Standards Board
Private-sector body comprising of five voting members
due-process prodedures as contemplates a reporting issue
- bt repayment from borrower over a periord that exceeds a year
- bu Buisness executives with decision making authority, who are ganets of the shareholders, and are responsible for safeguarding and propertly using the firm's resources.