Term
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Definition
| The procedures designed to ensure that the company is managed in the interests of the shareholders. |
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Term
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Definition
| Elected by the shareholders to represent their interests, is responsible for maintaining the integrity of the company's financial reports. |
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| Unqualified (Clean) Audit Opinion |
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Definition
| Auditors' statement that the financial statements are fair presentations in all material respects in conformity with GAAP. |
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Term
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Definition
| Predictions of earnings for future accounting periods. |
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Definition
| Managers of pension, mutual, endowment, and other funds that invest on the behalf of others. |
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Definition
| Individuals who purchase shares in companies. |
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Definition
| Suppliers and financial institutions that lend money to companies. |
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Term
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Definition
| Suggests that the benefits of accounting for and reporting information should outweigh the costs. |
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Term
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Definition
| Can influence a decision; it is timely and has predictive and/or feedback value. |
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Term
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Definition
| Information that is accurate, unbiased, and verifiable |
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Term
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Definition
| Information that can be compared over time because similar accounting methods have been applied. |
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Term
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Definition
| Allows comparisons across businesses because similar accounting method shave been applied. |
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Term
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Definition
| Amounts that are large enough to influence a user's decision. |
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Term
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Definition
| Suggests that care should be taken not to overstate assets and revenues or understate liabilities and expenses. |
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Term
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Definition
| A written public news announcement normally distributed to major news services. |
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Term
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Definition
| The annual report that publicly traded companies must file with the SEC. |
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Term
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Definition
| The quarterly report that publicly traded companies must file with the SEC. |
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Term
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Definition
| Used by publicly traded companies to disclose any material event not previously reported that is important to investors (e.g., auditor changes, mergers). |
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Term
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Definition
| A legal amount per share established by the board of directors; it establishes the minimum amount a stockholder must contribute and has no relationship to the market price of the stock. |
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Term
| Additional Paid-In Capital (Paid-In Capital, Contributed Capital in Excess of Par) |
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Definition
| The amount of contributed capital less the par value of the stock |
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Term
| Gross Profit (Gross Margin) |
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Definition
| Net sales less cost of goods sold |
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Term
| Income from Operations (Operating Income) |
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Definition
| Equals net sales less cost of goods sold and other operating expenses. |
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Term
| Income Before Income Taxes (Pretax Earnings) |
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Definition
| Revenues minus all expenses except income tax expense. |
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Term
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Definition
| Results from the disposal of a major component of the business and are reported net of income tax effects. |
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Term
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Definition
| Gains and losses that are both unusual in nature and infrequent in occurrence; they are reported net of tax on the income statement. |
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Term
| Cumulative Effects of Changes in Accounting Methods |
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Definition
| The amounts reflected on the income statement for adjustments made to balance sheet accounts when applying different accounting principles. |
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