Term
Limitations of Balance Sheet
(2) |
|
Definition
1. Does not portray market value of entity as a going concern/liquidation value
2. Resources (employee skills, rep) not recorded |
|
|
Term
|
Definition
1. Future cash flows
2. Liquidity information
3. long-term solvency information (riskiness) |
|
|
Term
|
Definition
| Probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events |
|
|
Term
|
Definition
1. cash
2. cash equivalents
3. st investments
4. receivables
5. inventories
6. prepaid expenses |
|
|
Term
|
Definition
1. Acquire RM
2. RM to Finished Product
3. Deliver
4. Collect Cash |
|
|
Term
|
Definition
1. investments
2. ppe
3. intangible assets
4. other assets |
|
|
Term
|
Definition
| Probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities as a result of past transactions or events |
|
|
Term
|
Definition
1. AP
2. NP
3. Accrued liabilities
4. unearned revenues
5. current maturites of LT debt |
|
|
Term
|
Definition
1. LT Notes
2. Mortgages
3. LT Bonds
4. Pensions Obligations
5. Lease Obligations |
|
|
Term
|
Definition
| residual interest of assets after deducting liabilities |
|
|
Term
| Summary of Significant Accounting Policies |
|
Definition
| Conveys valuable information about company's choices from among various alternative accounting methods |
|
|
Term
|
Definition
| Significant development that occurs after the company's fiscal year end but BEFORE the financial statements are issued |
|
|
Term
| Noteworthy Events & Transactions |
|
Definition
| Potentially important to evaluating financial statements |
|
|
Term
| MGMT. Discussion & Analysis |
|
Definition
| Biased but informed perspective of company's operations, liquidity, and capital resources |
|
|
Term
| MGMT. Responsibilities (2) |
|
Definition
1. Preparing financial statements & Other info in annual report
2. Maintain/Assess internal control procedures |
|
|
Term
|
Definition
Opinion of fin. statements in conformity of GAAP.
Mustcomply with PCAOB |
|
|
Term
|
Definition
1. Unqualified
2. Qualified
3. Adverse
4. Disclaimer |
|
|
Term
|
Definition
| Exception that is not of sufficient seriousness to invalidate the financial statments as a whole ** |
|
|
Term
|
Definition
| Financial statements present fairly the fin. position, result of operations, and CF are in conformity with GAAP |
|
|
Term
|
Definition
| Exceptions are so serious that qualified opinion is not justified |
|
|
Term
|
Definition
| Insufficient Information has been gathered |
|
|
Term
| Comparative Financial Statements |
|
Definition
| Compare Year-to-Year financial position, operatins, CF |
|
|
Term
|
Definition
| Each item as a percentage of the same item in another year (base) |
|
|
Term
|
Definition
| Each item as a percentage of appropriate corresponding total |
|
|
Term
|
Definition
| Control for size differences over time and among firms |
|
|
Term
Current Ratio
(Liquidity) |
|
Definition
CA/CL
Satisfy st liabilities |
|
|
Term
Acid-Test Ratio
(Liquidity) |
|
Definition
Quick Assets/CL
Stringent indication to satisfy st liabilities |
|
|
Term
Debt-to-Equity Ratio
(Financing) |
|
Definition
TL/SE
Extent of reliance on creditors, rather than owners to provide resources |
|
|
Term
| Times interest earned Ratio |
|
Definition
(NI+Interest Exp+Income Tax)/Int Exp
Margin of safety provided to characters |
|
|
