Term
| Goals contrasted with strategies |
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Definition
| goal describes an ending position, while a strategy describes a process of getting from the current position to the goal |
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Term
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Definition
| obtaining resources from (a) owners and providing them with a return on and a return of their investment and (b) creditors and repaying amounts borrowed (or otherwise settling the obligation) |
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Term
| Shareholders,stockholders |
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Definition
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Term
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Definition
| an adjectival phrase describing firms whose securities trade in active markets or the securities themselves |
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Term
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Definition
| a distribution of assets generated from earnings to owners of a corporation. The firm may distribute cash, stock, property, or other securities. Become legal liability of the corporation when the corporation's board declares them |
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Term
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Definition
| one who lends (account payable) |
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Term
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Definition
| acquiring and selling securities of productive assets expected to produce revenue over several periods |
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Term
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Definition
| for purposes of the statement of cash flows, all transactions and events that are neither financing activities nor investing activities |
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Term
| Annual report to shareholders |
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Definition
| a report prepared once a year for shareholders and other interested parties. Includes a BS, IS, SCF, change in owners' equity accounts, summary of significant accounting principles, other explanatory note, the auditor's report and comments from management |
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Term
| Management's Discussion and Analysis |
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Definition
| discussion of management's views of the company's performance; required by the SEC to be included in the 10-K and in the annual report to shareholders. Usually has liquidity, results of operations, segments, and effects of inflation |
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Term
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Definition
| period of 12 consecutive months chosen by a business as the accounting period for annual reports, not necessarily a natural business year or calender year. |
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Term
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Definition
| numerical amount reported |
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Term
| Balance sheet or statement of financial position |
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Definition
statement of financial position that show Total Assets = Total Liabilities + Owners' Equity. Usually classifies total assets as (1) current assets (2) investments (3) property, plant and equipment or (4) intangible assets
[L + E = A] |
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Term
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Definition
| "probable future economic benefits obtained or controlled by a particular entity as a result of past transactions....look in notes..... |
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Term
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Definition
| an obligation to pay definite (or reasonably definite) amount at a definite (or reasonable definite) time in return for a past or current benefit; a probable future sacrifice of economic benefits arising from present obligation of a particular entity to transfer assets or to provide services to other entities in the future as a result of past transactions or events. |
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Term
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Definition
| proprietorship or owners' equity of a corporation. Because stock means inventory in Australia, the UK, and Canada, their writers use the term "shareholders' equity" rather than the term "stockholders' equity" |
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Term
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Definition
| net income over the life of a corporation less all dividends (including capitalization through stock dividends); owners' equity less contributed capital |
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Term
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Definition
| acquisition cost; original cost; a suck cost |
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Term
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Definition
| valuation or basis using fair values or market values as of the balance sheet date, in contrast an historical cost |
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Term
| Income statement or statement of profit and loss |
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Definition
| statement of revenues, expenses, gains, and losses for the period, ending with net income for the period. Accountants usually hsow the eranings-per-share amount on the income statement; the reconciliation of beginning and ending balances of retained earnings may also appear in a combined statement of income and retained earnings |
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Term
| Net income, earnings, profit |
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Definition
| excess of all revenues and gains for a period over all expenses and losses of the period. |
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Term
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Definition
| excess of all expenses and losses for a period over all revenues and gains of the period; negative net income |
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Term
| Revenues, sales, sales revenue, turnover |
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Definition
| Owners' equity increase accompanying the net assets increase caused by selling goods or rendering services; a service rendered. Number of times that assets, such as inventory or accounts receivable, are replaced on average during the period. |
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Term
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Definition
| decrease in owners' equity accompanying the decrease in net assets caused by selling goods or rendering services or by the passage of time; a "gone" asset; an expired cost. |
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Term
| Statement of shareholder's equity |
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Definition
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Term
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Definition
| a supporting set of calculations, with explanations, that show how to derive figures in a financial statement or tax return |
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Term
| Financial reporting process |
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Definition
| managers and governing boards of reporting entities select from accounting principles provided by standard setters and regulatory bodies and prepare financial statements, which independent external auditors attest to, to enable users of financial statements to make informed decisions |
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Term
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Definition
| business executives with decision making authority who are agents of the shareholders, and are responsible for safeguarding and properly using the firm's resources |
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Term
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Definition
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Term
| Securities and Exchange Commission (SEC) |
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Definition
| agency authorized by Congress to regulate,the financial reporting practices of most public corporations. SEC has indicated it will usually allow the FASB to set accounting principles, but it often requires more disclosure than the FASB requires. Releases its accounting requirements in its Accounting Series Releases (ASR) |
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Term
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Definition
| firm incorporated in the US that lists and trades its securities in the US |
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Term
| Non-US SEC registrant, foreign private issuer |
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Definition
| firm incorporated under non-US laws that has filed the necessary documents with the SEC to list and trade its securities in the US |
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Term
| Financial Accounting Standards Board (FASB) |
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Definition
| private-sector body comprising five voting members. The board works full-time for the FASB and sever all relations with their previous employers |
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Term
| US GAAP (generally accepted accounting principles) |
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Definition
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Term
| Statements of Financial Accounting Standards |
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Definition
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Term
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Definition
| FASB has issued a compilation of US GAAP, including Statements of Financial Accounting Standards, Accounting Principles Board Opinions, Accounting Research Bulletins, Staff Accounting Bulletins, EITF Consensuses, FASB Interpretations, and several other sorts of pronouncements |
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Term
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Definition
| coherent system of interrelated objectives and fundamentals, promulgated by the FASB primarily through its SFAC publications, intended to lead to consistent standards for financial accounting and reporting. IASB has a similar conceptual framework |
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Term
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Definition
| according to SFAC No. 2, the financial reporting objective stating that accounting information is appropriate or helpful for the purposes to be served by that information |
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Term
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Definition
| according to SFAC No. 2, the financial reporting objective stating that accounting information "represents what it purports to represent" |
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Term
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Definition
| qualitative characteristic of accounting information that firms record like transactions and events similarly |
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Term
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Definition
| entering a transaction in the accounts; contrast with realize |
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Term
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Definition
| showing of facts in financial statements, notes thereto, or the auditor's report |
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Term
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Definition
| law, passed in 2002 in wake of Enron, Worldcom, and other scandals, to stiffen the requirements for corporate governance, including accounting issues. |
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Term
| Public Company Accounting Oversight Board (PCAOB) |
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Definition
| board established by SOX that regulates the auditing profession and sets standards for audits of public companies and their auditors to fund its operations |
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Term
| International Accounting Standards Boards (IASB) |
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Definition
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Term
| International Financial Reporting Standards (IFRS) |
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Definition
| refers broadly to all the pronouncements of the IASB and, with numbers after the letters, to specific reporting standards issued by the IASB |
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Term
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Definition
| intention of the FASB and IASB to eliminate differences between US GAAP and IFRS |
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Term
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Definition
| contains attestation or lack thereof |
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Term
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Definition
| accounting practice of delaying the recognition of gains and losses from changes in the market price of assets until the firm sells the assets. However, the firm recognizes unrealized losses on inventory prior to sale when the firm uses the lower-of-cost-or-market valuation basis for inventory or when it recognizes impairments |
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Term
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Definition
| concept that accounting should disclose separately only those events that are relatively important for the business or for understanding its statements. SFAC No. 2 suggests that accounting information is material if the "judgment of a reasonable person relying on the info would have been changed or influenced by the omission or misstatement" |
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Term
| Accounting period convention, reporting period |
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Definition
| 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 cash flows |
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Term
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Definition
| 12-yr period chosen as the reporting period so that the end of the period coincides with a low point in activity or inventories |
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Term
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Definition
NOTES
System of accounting in which a firm recognizes revenues when it receives cash and recognizes expenses as it makes disbursements. Firm makes no attempt to match revenues and expenses in measuring income. |
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Term
| Accrual basis of accounting |
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Definition
NOTES
method of recognizing revenues as a firm sells goods and as it renders services, independent of the time when it receives cash. This system recognizes expenses in the period when it recognizes the related revenue, independent of the time when it pays cash. SFAC No.1 says |
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Term
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Definition
| concept of recognizing cost expirations (expenses) in the same accounting period during which the firm recognizes related revenues; combining or simultaneously recognizing the revenues and expenses that jointly result from the same transactions or other events |
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