C213 Accounting for Decision Makers (VAC2 Terms)
1."Other Assets": Long-term assets that are not suitable for reporting
under any of the previous classifications
2.Accounting: A system of providing "quantitative information,
primarily financial in nature, about economic entities that is intended
to be useful in making economic decisions."
3.Accounting Equation: Assets = Liabilities + Owners' Equity
4.Accounts Payable: The flip side of accounts receivable—when one company sells on credit, creating for itself an account receivable, the company on the other side of the transaction is buying on credit, creating an account payable.
5.Accounts Receivable: Amounts owed to a business by its credit customers and are usually collected in cash within 10 to 60 days.
6.Accrual Accounting: The process that accountants use in adjusting raw trans- action data into refined measures of a firm's economic performance.
7.Accumulated Depreciation: Reflects the wear and tear, or depreciation, of these items since they were originally purchased. .Accumulated Other Comprehensive Income: The grouped together
and re- ported changes which companies experience increases and
decreases in equity each year because of the movement of market
prices or exchange rates
9.Activity-based Costing (ABC): A method of attributing overhead costs to prod- ucts based on measurable factors that relate to activities that create overhead costs.
10.Additional Paid-in Capital: Invested by stockholders that exceeds the par value of the issued shares.
11.American Institute of Certified Public Accountants (AICPA): The profes- sional organization of certified public accountants in the United States.
12.Asset: Probable future economic benefit obtained or controlled by a
particular entity as a result of past transactions or events.
13.Asset Mix: The proportion of total assets in each asset category, is determined to a large degree by the industry in which the company operates.
14.Asset Turnover: Sales divided by assets and is interpreted as the number of dollars in sales generated by each dollar of assets.
15.Assets: Assets are the firm's economic resources, formally defined
as "proba- ble future economic benefits obtained or controlled by a
particular entity as a result of past transactions or events .Assets-to-equity Ratio: Assets divided by equity and is interpreted
as the number of dollars of assets acquired for each dollar invested by stockholders.
17.Audit Committee: Members of a company's board of directors who
are re- sponsible for dealing with the external and internal auditors.
18.Average Collection Period: Shows the average number of days that elapse between sale and cash collection.
19.Balance Sheet: A listing of an organization's assets and of its liabilities at a certain time.
20.Batch-level Activities: Activities that take place in order to support a batch or production run, regardless of the size of the batch.
21.Book Value: The book value of an asset is the asset's cost minus the asset's accumulated depreciation.
22.Bookkeeping: The preservation of a systematic, quantitative record of an activity.
23.Break-even Point: The amount of sales at which total costs of the number of units sold equal total revenues; the point at which there is no profit or loss.
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