C213 Accounting for Decision Makers (VAC2 Terms)fully solved 2024/2025

C213 Accounting for Decision Makers (VAC2 Terms) "Other Assets" Long-term assets that are not suitable for reporting under any of the previous classifications Accounting A system of providing "quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions." Accounting Equation Assets = Liabilities + Owners' Equity 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. Accounts Receivable Amounts owed to a business by its credit customers and are usually collected in cash within 10 to 60 days. Accrual Accounting The process that accountants use in adjusting raw transaction data into refined measures of a firm's economic performance. 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 reported changes which companies experience increases and decreases in equity each year because of the movement of market prices or exchange rates Activity-based Costing (ABC) A method of attributing overhead costs to products based on measurable factors that relate to activities that create overhead costs. Additional Paid-in Capital Invested by stockholders that exceeds the par value of the issued shares. American Institute of Certified Public Accountants (AICPA)