Term
| Income from Continuing Operations |
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Definition
1. Revenues
2. Expenses
3. Gains/Losses
4. Income Tax Expense |
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Term
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Definition
| Inflows resulting from providing goods/services |
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Term
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Definition
| Outflows incurred in generating revenues |
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Term
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Definition
| Inc/Dec in equity from peripheral/incidental transacations |
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Term
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Definition
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Term
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Definition
| Rev/Exp related to principal revenue-generating activities |
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Term
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Definition
| Gains/Losses & Rev/Exp related to peripheral or incidental activities |
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Term
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Definition
| Ability of reported earnings to predict future earnings |
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Term
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Definition
1. Income Shifting
2. Income Statement Classification |
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Term
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Definition
| Shutdown or relocation of facilities or downsizing of operations |
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Term
| Goodwill Impairment & Long-Lived asset impariment |
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Definition
| impairment losses or changes |
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Term
| Nonoperating income/earnings quality |
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Definition
| gains/losses generated from sale of investments can inflate/deflate current earnings |
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Term
| Separately Reported Items |
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Definition
1. Discountinued Operations
2. Extraordinary Items
Net of taxes |
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Term
| Reporting for COmponents Sold |
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Definition
| Gain/Loss on disposal of assets |
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Term
| Reporting for Components Held for Sale |
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Definition
"impairement loss" if
carrying value>(fair value-cost to sell) |
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Term
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Definition
1. Unusual in nature
2. Infrequent in occurrence
net of related taxes |
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Term
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Definition
if not BOTH
included as separate items in continuing operations |
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Term
| Accounting Principle Change |
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Definition
One GAAP method to another
- LIFO to FIFO |
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Term
| Accounting Estimate Change |
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Definition
Revision of estimate after new information
- Revision of previous estimate
2. use new estimate in current and future
3. depreciation, amortization, depletion |
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Term
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Definition
| Fin. Statement Prep for other accounting entity |
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Term
Accounting Errors
(same year |
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Definition
| Reverse original entry and record appropriately |
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Term
Accounting Errors
(subsequent years) |
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Definition
- record prior period adjustment to beginning RE balance of SE
- previous incorrect fin. statements retrospectively restated to reflect correction |
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Term
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Definition
Amount of income earned by a company expressed on a per share basis
BASIC: (NI-Pref Div)/(weighted avg # of common shares) |
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Term
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Definition
-Provides relecant information about cash receipts/disbursements
-helps investors/creditors asses
1. future net cash flows
2. liquidity
3. lt solvency
-required for each income stmnt period reported |
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Term
Operating Activities
CASH FLOWS |
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Definition
INFLOWS
1. sales
2. int/div received
OUTFLOWS
1. inventory purchase
2. salaries, wages, op expenses
3. debt interest
4. income taxes |
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Term
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Definition
| Reports cash effects of each operating activity |
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Term
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Definition
| Starts with accrual NI and converts to cash basis |
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Term
Investing Adtivities
CASH FLOWS |
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Definition
INFLOWS
1. sale of long-lived asset
2. sale of investment securities
3. collection of nontrade receivables
OUTFLOWS
1. long-lived asset purchase
2. purchase of investment
3. loans to other entities |
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Term
Financing Activities
CASH FLOWS |
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Definition
INFLOWS
1. sale of shares to owners
2. borrowing from creditors
OUTLFOWS
1. owners in the form of div
2. owners for reacquisition of shares
3. creditors as repayment of debt |
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