C213 Accounting WGU

C213 Accounting WGU Leave the first rating Students also studied Terms in this set (189) Social SciencesEconomics Finance Save C213 WGU OA Prep 208 terms Skylar_Weible Preview WGU C213 Accounting for Decision ...82 terms Cait_Blankenship Preview WGU C214 Concepts Only Multi Cho...Teacher 222 terms Lydia_Smith75 Preview WGU C Teacher zha Practice questions for this set Learn1 / 7Study using Learn systematic planning for longer term investments in operating assests Accountinga system of providing "quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions" AICPAAmerican Institute of Certified Public Accountants-the professional organization of certified public accountants in the united states Choose an answer 1Accounting2capital budgeting 3Managerial Accounting4direct labor Don't know?

Balance Sheetdocument which reports the resources of a company (assets), the company's obligations (liabilities), and the owner's equity, which represents how much money has been invested in the company by its owners.BookkeepingThe preservation of a systematic, quantitative record of an activity CPACertified Public Accountant-a person who has taken a minimum number of college level accounting classes, has passed the dreaded CPA exam, and has met other requirements set by his or her state.Financial Accountingthe name given to accounting information provided for and used by external users FASBFinancial Accounting Standards Board - governmental body that sets accounting standards in the United States Financial Statementsthe three primary financial information documents: the balance sheet, income statement, and statement of cash flows Income Statementthis document reports the amount of net income earned by a company during a period, with annual and quarterly income statements being the most common IRSInternal Revenue Service m- the government agency responsible for tax collection and tax law enforcement IASBInternational Accounting Standards Board - an independent, international body formed to develop worldwide accounting standards IFRSInternational Financial Reporting Standards - the accounting standards produced by the IASB Managerial Accountingthe name given to accounting systems designed for internal users PCAOBPublic Company Accounting Oversight Board - a private, non-profit organization that effectively serves as an arm of the SEC in registering, inspecting, and disciplining the auditors of all publicly traded companies.Statement of Cash Flowsa document that reports the amount of cash collected and paid out by a company in the following three types of activities: operating, investing, and financing.Accounting Equationassets = liabilities + owner's equity Accumulated Other Comprehensive Incomethe source of theses increased assets Assetsthe firm's economic resources, formally defined as "probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events" Balance Sheeta statement of financial position - shows the financial resources the company owns or controls and the claims on those resources

Book Valuethe book value of an asset is the asset's cost minus the asset's accumulated depreciation Comparabilityinformation that becomes much more useful when it can be related to a benchmark or standard Conservatisma pervasive factor in accounting summarized as, when in doubt, recognize all losses but don't recognize any gains Consistencythe principle that, once you adopt an accounting principle or method, continue to follow it consistently in future accounting periods DisclosureDisclosure in the notes that accompany the financial statements is the accepted way to convey information to users when the information is too uncertain to be able to be boiled down into one concrete number EPSEarnings per Share = tells the owner of one share of stock what she or she really wanted to know Entity Conceptthe idea that personal financial activity is kept separate from business financial activity Expensesthe amount of assets consumed from the performance of business operations and thus are the opposite of revenues External Auditaudit conducted by external (independent) qualified accountants Financing Activitiesthose activities whereby cash is obtained from, or repaid to, owners and creditors Gainsrefers to money made on activities outside the normal business of a company Going Concern Assumptionallows the readers of financial statements to assume that the company will continue on long enough to carry out its objectives and commitments Historical Cost Conventionan accounting technique that values an asset for balance sheet purposes at the price paid for the asset at the time of its acquisition Income Statementa company's financial performance for a specified period of time Investing Activitiesthe purchase and sale of land, buildings, and equipment. investing activities also include buying and selling stocks of other companies liabilitiesthe future sacrifices of economic benefits that the entity is presently obliged to make to other entities as a result of past transaction or other past events liquiditythe ease of which the item can be turned into cash lossesrefers to money lost on activities outside the normal business of a company

materialitythe question of whether an item is large enough to make any difference to anyone net assetstotal assets minus total liabilities. in a sole proprietorship the amount of net assets is reported as owner's equity. in a corporation the amount of net assets is reported as stockholders' equity net incomethe difference between revenues and expenses. if revenues exceed expenses, net income results. if expenses exceed revenues, there will be a net loss net lossthe difference between revenues and expenses. if revenues exceed expenses, net income results, if expenses exceed revenues, there will be a net loss notes to financial statementsthese provide additional information pertaining to a company's operations and financial position and are considered to be an integral part of the financial statements.operating activitiesthose activities involved in producing and selling goods and services and thus comprise the day to day business of a company owner's equityportion of the assets that the owners of the organization can really call their own paid-on capitalthe value of the assets given in exchange for shared of stock.... refers to capital contributed to a corporation by investors through purchase of stock from the corporation (primary market) (not through purchase of stock in the open market from other stockholders (secondary market)). It includes share capital (i.e. capital stock) as well as additional paid-in capital.recognitionbreaking down all the estimates and judgments into one number and then reporting that one number relevancea qualitative characteristic in accounting-relevance is associated with information that timely, useful, has predictive value, and is going to make a difference to a decision maker reliabilitya qualitative characteristic in accounting. it is achieved when information is verifiable, objective and you can depend on it retained earningsrepresent the portion of stockholders' equity, resulting from cumulative profitable operations, that has not been paid to the owners as dividends revenuethe amount of assets created through the performance of business operations revenue recognitionthe accounting process used to determine when revenue should be reported in the income statement statement of cash flowsindividual cash flow items that are classified according to three main activities: operating, investing, and financing