| Terms |
Definitions |
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Liabilities
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A/P
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Age
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Accum depreciation/Depreciation Expense
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renal
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pertaining to the kidney
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Cost Assignment Trade-off
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General: Inexpensive, FinancialSpecific: Costly, Management
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Owners Drawing Account Increase
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Debit increase
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33. Proprietorship
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business with a single owner.
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Price Variance
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(AQ*AP) - (AQ*SP) = AQ(AP-SP)
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cystoscopy
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visual examination of the urinary bladder
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Control Activities
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procedures to control above actions
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Case of Xerox
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-Aggressive account practices
-Tone at the Top
-KPMG Failed to exercise due care, skepticism, adhere to GAAP
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Residual Income
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Net Operating Income - (Minimum required return(%) × average operating assets)
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Delivery Cycle Time
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Wait time plus throughput time
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Long-Term Liabilities
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Notes Payable and Bonds Payable (depends on the date of maturity)
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A financial statement listing an entitiy's revenues, expenses, and net income or net loss for a specific period
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Financial statements
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3 Business Activities
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Operating- revenue and expensive transactions
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Liability to clients
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-A contractual obligation to the client that creates a privity relationship
-client can bring a lawsuit against an account for failing to live up to the terms of the contract
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10. Deferred revenue
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liability created when a business collects cash from customers in advance of doing work. Also called unearned revenue.
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Percentage increase
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(New value - old value)
÷
old value
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Independent Outside Auditor
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A registered public accounting firm, hired by the organization's board or executive management, to perform a financial statement audit.
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Sole Proprietorship
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Form of organization with a single owner.(Economic Entity Concept-the assumption that a single, identifiable unit must be accounted for in all situations.)
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Partial period depreciation
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Determine depreciation expense for the full year and prorate this expense between the periods involved
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bonds are always recorded as held to maturity invetsments (2 answers)
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truefalse
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disburse
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to pay out (money), esp. for expenses; expend.
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administrative expenses
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costs related to the management of the business
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revenues are realizable when...
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describes a situation where non-cash resources are readily convertible into known amounts of cash.
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Accounts Receivable Turnover
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Net Credit Sales (or net sales) divided by average net accounts recivable. Debit CAsh, CRedit AR
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Generally Accepted Accounting Principles (GAAP)
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The various methods, rules, practices, and otehr procedures that have evolved over time in response to teh need to regualte the preparation of financial statements.
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An entry to the right side of an account.
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Credit
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present value
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a future cash flows value at time zero
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10. Certified public accountants CPAs
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licensed accountants who serve the general public rather than one particular company.
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Direct Materials
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Materials that are a part of the final product and can be directly traced to the goods and services being produced
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What's the difference between straight-line and MACRS depreciation
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-straight line depreciates assets by same percentage of historical value every year
-MACRS starts out faster
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9. Certified management accountant CMA
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licensed accountant who works for a single company.
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What is the International Accounting Standards Committee?
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The organization formed to develop worldwide accounting standards.
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Four Types of Probabilistic Sample Selection Methods
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1. random number sample selection
2. systematic sample selection
3. probability proportion to size
4. stratified sample selection
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What is the difference between improvements and replacements?
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An improvement is the substitution of a better asset for the one currently used. A replacement is the substitution of a similar asset.
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Assets that qualify for interest cost capitalization include:
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1. Assets under construction for an enterprise’s own use.2. Assets intended for sale or lease that are constructed or otherwise produced as discrete projects.
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What is the role of the Securities and Exchange Commission?
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A regulatory agency that sets the rules under which financial statements must be prepared for corporations that sell their stock to the public on organized stock exchanges.
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