How can we help?

You can also find more resources in our Help Center.

Study sets matching "term:fundamental accounting = relevance and faithful representation"

Study sets
Classes
Users

Study sets matching "term:fundamental accounting = relevance and faithful representation"

33 terms
Chapter 2: Fundamental Financial Accounting Concepts
Recognition
Realization
Accrual Accounting
Deferral
Reporting an accounting event in the financial statements.
Accounting term that usually refers to actual cash collection…
This type of accounting recognizes revenues and expenses in t…
Accounting recognition of revenue or expense in a period afte…
Recognition
Reporting an accounting event in the financial statements.
Realization
Accounting term that usually refers to actual cash collection…
9 terms
Fundamental Qualties
Two Fundamental Qualities
The ingredients that make up Relevance…
The ingredients that make up Faithful…
Relevance
Relevance and Faithful Representation
Predictive value, Confirmatory value, and Materiality
Completeness, Neutrality, and Free from error
Predictive Value
Two Fundamental Qualities
Relevance and Faithful Representation
The ingredients that make up Relevance…
Predictive value, Confirmatory value, and Materiality
8 terms
Accounting Fundamental Qualitative Characteristics
Relevance
Predictive Value
Confirmatory Value
Materiality
Relevant information can make a difference to the decisions u…
Information is used as an input when determining what is like…
Information that provides feedback that either confirms or ch…
Information is material if its size or nature is so significa…
Relevance
Relevant information can make a difference to the decisions u…
Predictive Value
Information is used as an input when determining what is like…
8 terms
8 Fundamental characteristics
Relevance
Predictive value
Confirmatory value
Materiality
Relevant information can make a difference to the decisions u…
Information is used as an input when determining what is like…
Information that provides feedback that either confirms or ch…
Information is material if its size or nature is so significa…
Relevance
Relevant information can make a difference to the decisions u…
Predictive value
Information is used as an input when determining what is like…
11 terms
ACCT221 CH.2 FUNDAMENTAL & ENHANCING QUALITIES E2-4
Qualitative characteristic being emplo…
Quality of information that confirms u…
Imperative for providing comparisons o…
Ignores the economic consequences of a…
Comparability
Confirmatory Value
Comparability/Consistency
Neutrality
Qualitative characteristic being emplo…
Comparability
Quality of information that confirms u…
Confirmatory Value
17 terms
ACCT221 CH.2 FUNDAMENTAL & ENHANCING QUALITIES
What are the two fundamental qualities…
Accounting information is relevant if…
Financial information is capable of ma…
Accounting information has value as an…
relevance and faithful representation
Relevance
1. Predictive Value... 2. Confirmatory Value... 3. Materiality
Predictive Value
What are the two fundamental qualities…
relevance and faithful representation
Accounting information is relevant if…
Relevance
15 terms
Fundamental Qualities, ingredients, and enhancing qualities of accounting
Predictive Value, Confirmatory Value,…
Relevance
Predictive Value
Confirmatory Value
Ingredients of Relevance
accounting information must be capable of making a difference…
if it has value as an input to predictive processes used by i…
affirm or correct prior expectations
Predictive Value, Confirmatory Value,…
Ingredients of Relevance
Relevance
accounting information must be capable of making a difference…
20 terms
Fundamental Accounting Principles Chapter 4
accounting cycle
classified balance sheet
closing entries
closing process
Recurring steps performed each accounting period, ... starting w…
Balance sheet that presents assets and liabilities in relevan…
Entries recorded at the end of each accounting period ... to tra…
Necessary end-of-period steps to prepare the accounts ... for re…
accounting cycle
Recurring steps performed each accounting period, ... starting w…
classified balance sheet
Balance sheet that presents assets and liabilities in relevan…
48 terms
Fundamental Accounting Principles
accounting
bookkeeping
external users
financial accounting
Information and measurement system that identifies, records,…
the recording of transactions and events, either manually or…
Persons using accounting information who are not directly inv…
focuses on reporting information to external users
accounting
Information and measurement system that identifies, records,…
bookkeeping
the recording of transactions and events, either manually or…
28 terms
Fundamental Accounting Principles 21st Edition Chapter 3 & 4
What is a trial balance?
What is the purpose of the closing pro…
What are permanent accounts?
What are long-term investments?
A list of accounts and their balances at a point in time. Tot…
To prepare the accounts for recording the transactions of the…
Accounts that reflect activities related to one or more futur…
Long-term assets not used in operating activities such as not…
What is a trial balance?
A list of accounts and their balances at a point in time. Tot…
What is the purpose of the closing pro…
To prepare the accounts for recording the transactions of the…
33 terms
Chapter 2 Second Level: Fundamental Concepts
General-purpose financial reporting
Qualitative characteristics
Relevance
Predictive value
helps users who lack the ability to demand all the financial…
distinguishes better information from inferior information fo…
capable of making a difference in a decision
has value as an input to predictive processes used by investo…
General-purpose financial reporting
helps users who lack the ability to demand all the financial…
Qualitative characteristics
distinguishes better information from inferior information fo…
71 terms
Fundamental Accounting Principles Key Terms Chapter 1
accounting
accounting Equation
assets
audit
Information and measurement system that identifies, records,…
Equality involving a company's assets, liabilities, and equit…
Resources a business owns or controls that are expected to pr…
Analysis and report of an organization's accounting system, i…
accounting
Information and measurement system that identifies, records,…
accounting Equation
Equality involving a company's assets, liabilities, and equit…
10 terms
Fundamental Qualities of Accounting
materiality
confirmatory (or feedback) value
predictive value
completeness
the information is sufficient in nature or amount to affect a…
the information provides feedback in order for users to asses…
the information has the ability to help users evaluate past,…
information needed for the faithful representation of a compa…
materiality
the information is sufficient in nature or amount to affect a…
confirmatory (or feedback) value
the information provides feedback in order for users to asses…
54 terms
TCU Fundamentals of Accounting CH 1 & 2 (LAWS)
Accounting
Financial Accounting Standards Board (…
Financial Accounting
Balance Sheet (Statement of Financial…
A system that collects and processes (analyzes, measures, and…
The private sector body given the primary responsibility to w…
Accounting area focused on providing financial information to…
Reports the amount of assets, liabilities, and stockholders'…
Accounting
A system that collects and processes (analyzes, measures, and…
Financial Accounting Standards Board (…
The private sector body given the primary responsibility to w…
11 terms
British Values
Democracy
Rule of law
Individual liberty
Mutual respect
A system of government/leadership where elections are held to…
The principle that all people and institutions are subject to…
Individual liberty suggests the free exercise of rights gener…
The proper regard for an individual's dignity, which is recip…
Democracy
A system of government/leadership where elections are held to…
Rule of law
The principle that all people and institutions are subject to…
23 terms
Fundamental Managerial Accounting Concepts Sixth Edition Chapter 6
Avoidable costs
Batch-level costs
Bottleneck
Certified suppliers
Potential future costs an organization can circumvent by choo…
The costs associated with producing a batch of products, most…
...
Suppliers who have demonstrated reliability by providing the…
Avoidable costs
Potential future costs an organization can circumvent by choo…
Batch-level costs
The costs associated with producing a batch of products, most…
17 terms
Fundamental Managerial Accounting Concepts 6th Edition Chapter 2
Activity base
Contribution margin
Cost averaging
Cost behavior
Factor that causes changes in total variable cost; usually so…
The difference between sales revenue and variable cost; the a…
cost averaging Measuring the cost per unit of a product or se…
How a cost changes (increase, decrease, remain constant) rela…
Activity base
Factor that causes changes in total variable cost; usually so…
Contribution margin
The difference between sales revenue and variable cost; the a…
15 terms
Fundamental Accounting Principles ch. 18 (Managerial Accounting)
Direct materials
Classification by behavior
Classification by traceability
Classification by controllability
Tangible components of a finished product. Costs derived from
A type of cost classification. Is the cost fixed or variable?…
A type of cost classification. A cost can be traced to a cost…
A type of cost classification. Is the cost controllable or no…
Direct materials
Tangible components of a finished product. Costs derived from
Classification by behavior
A type of cost classification. Is the cost fixed or variable?…
56 terms
Fundamental Accounting Principles: Chapter 1
Accounting
Accounting equation
Assets
Audit
Information and measurement system that identifies, records,…
Assets = Liabilities + Equity (balance sheet equation)
Resources a business owns or controls.
Analysis and report of an organization's accounting system, i…
Accounting
Information and measurement system that identifies, records,…
Accounting equation
Assets = Liabilities + Equity (balance sheet equation)
19 terms
Fundamental Accounting Principles Chapter 17
Business Segment
Common-size Financial Statement
Comparative Financial Statements
Efficiency
Part of a company that can be separately identified by the pr…
Statement that expresses each amount as a percent of a base a…
Statement with data for 2 or more successive periods placed i…
Company's productivity in using assets; usually measured rela…
Business Segment
Part of a company that can be separately identified by the pr…
Common-size Financial Statement
Statement that expresses each amount as a percent of a base a…
71 terms
Fundamental Final Exam Test 1 Review
How is critical thinking skills acquir…
What is the definition of critical thi…
What does a critical thinker considered?
What are important factors to consider…
gained only through experience, commitment, and active curios…
Involves open-mindedness, continual inquiry, and perseverance…
What is important in each clinical situation, imagines and ex…
Health History Data... Cultural... Ethical Beliefs
How is critical thinking skills acquir…
gained only through experience, commitment, and active curios…
What is the definition of critical thi…
Involves open-mindedness, continual inquiry, and perseverance…
12 terms
Intermediate Accounting- Fundamental and Enhancing Qualities
Relevance
Predictive value
Confirmatory value
Materiality
capable of making a difference in a decision
helps investors to form their own expectations about the future
relevant information with confirmatory value helps users to c…
information is material if omitting it or misstating it could…
Relevance
capable of making a difference in a decision
Predictive value
helps investors to form their own expectations about the future
20 terms
Fundamental Accounting Principles: Chapter 4
Accounting cycle
Classified balance sheet
Closing entries
Closing process
Recurring steps performed each accounting period, starting wi…
Balance sheet that presents assets and liabilities in relevan…
Entries recorded at the end of each accounting period to tran…
Necessary end-of-period steps to prepare the accounts for rec…
Accounting cycle
Recurring steps performed each accounting period, starting wi…
Classified balance sheet
Balance sheet that presents assets and liabilities in relevan…
12 terms
Strategic Managerial Accounting 12 Fundamental Terms
Contribution Margin
Cost Allocation
Variable Costs
Costs of Goods Sold
Sales less total variable costs
Process of assigning indirect costs to products or services
Costs that change in total in direct proportion with a change…
Costs of products sold during a period
Contribution Margin
Sales less total variable costs
Cost Allocation
Process of assigning indirect costs to products or services
20 terms
Fundamental Accounting Principles Chapter 4
accounting cycle
classified balance sheet
closing entries
closing process
Recurring steps performed each accounting period, ... starting w…
Balance sheet that presents assets and liabilities in relevan…
Entries recorded at the end of each accounting period ... to tra…
Necessary end-of-period steps to prepare the accounts ... for re…
accounting cycle
Recurring steps performed each accounting period, ... starting w…
classified balance sheet
Balance sheet that presents assets and liabilities in relevan…
35 terms
Fundamental Managerial Accounting Concepts 6th Edition Chapter 1
Activities
Activity-based management (ABM)
Average cost
Benchmarking
Measures an organization undertakes to accomplish... its mission…
Managing organization activities to add the greatest value by…
The total cost of making products divided by the total number…
Identifying best practices used by world-class competitors in…
Activities
Measures an organization undertakes to accomplish... its mission…
Activity-based management (ABM)
Managing organization activities to add the greatest value by…
59 terms
Fundamental Accounting Principles Key Terms Chapter 1
accounting
accounting Equation
assets
audit
Information and measurement system that identifies, records,…
Equality involving a company's assets, liabilities, and equit…
Resources a business owns or controls that are expected to pr…
Analysis and report of an organization's accounting system, i…
accounting
Information and measurement system that identifies, records,…
accounting Equation
Equality involving a company's assets, liabilities, and equit…
83 terms
Chapter 01 Fundamental Accounting Principles
Accounting
Recordkeeping
Bookkeeping
External users
is an information and measurement system that identifies, rec…
is the recording of transactions and events, either manually…
is the recording of transactions and events, either manually…
Person using accounting information who are not directly invo…
Accounting
is an information and measurement system that identifies, rec…
Recordkeeping
is the recording of transactions and events, either manually…
92 terms
Fundamental Accounting Principles-Chapter 1-Accounting in Business
Accounting
Purpose and importance of Accounting
Accounting Activities (exhibit 1.1 pg-4)
a. Identifying
An information and measurement system that identifies, record…
It helps assess opportunities, products, investments, and soc…
Identifying, Recording, Communicating
select relevant transactions and events. Ex: Sale of iPhones…
Accounting
An information and measurement system that identifies, record…
Purpose and importance of Accounting
It helps assess opportunities, products, investments, and soc…
25 terms
Fundamental Managerial Accounting Concepts Sixth Edition Chapter 4
allocation
allocation base
allocation rate
common costs
Process of dividing a total cost into parts and assigning the…
The factor used as the base for cost allocation; when possibl…
The mathematical factor used to allocate or assign costs to a…
support multiple cost objects, but cannot be directly traced…
allocation
Process of dividing a total cost into parts and assigning the…
allocation base
The factor used as the base for cost allocation; when possibl…
35 terms
Fundamental Accounting Principles Ch. 21 Cost-Volume-Profit Analysis
Absorption costing
Break-even point
Composite unit
Contribution margin per unit
Costing method that assigns both variable and fixed costs to…
The sales level at which a company neither earns an income no…
Generic unit consisting of a specific number of units of each…
The amount by which a product's unit selling price exceeds it…
Absorption costing
Costing method that assigns both variable and fixed costs to…
Break-even point
The sales level at which a company neither earns an income no…
57 terms
Chapter 9 Fundamental Legal Principles
Four legal principles of insurance
principle of indemnity
Purpose of principle of indemnity
Purpose of principle of indemnity
1. principle of indemnity... 2. principle of insurable interest…
The insurer agrees to pay no more than the actual amount of t…
Prevent the insured from profiting from a loss
reduce moral hazard. prevent insured from profiting from a lo…
Four legal principles of insurance
1. principle of indemnity... 2. principle of insurable interest…
principle of indemnity
The insurer agrees to pay no more than the actual amount of t…
58 terms
Fundamental Economic Concepts
What does economics address?
When did economics emerge as a field o…
What do economists study?
Who established the field of modern ec…
how individuals make choices about allocating scarce... resource…
about 200 years ago
how human societies organize themselves to transform availabl…
Adam Smith
What does economics address?
how individuals make choices about allocating scarce... resource…
When did economics emerge as a field o…
about 200 years ago
30 terms
Fundamental Accounting Principles Ch. 22 Master Budgets and Planning
Activity-Based Budgeting (ABB)
Budget
Budgeted Balance Sheet
Budgeted Income Statement
A budget system based on expected activities
A formal statement of a company's future plans; expressed in…
A managerial accounting report showing predicted amounts for…
A managerial accounting report showing predicted amounts of s…
Activity-Based Budgeting (ABB)
A budget system based on expected activities
Budget
A formal statement of a company's future plans; expressed in…
44 terms
Psych 210 Overview of Fundamental concepts:
Define Psuchè:
Does Psuchè differ from the concept of…
What is a teleological explanation?
Give some examples of a teleological e…
this is the greek notion that defines what animates or sustai…
this term differs from it in that it is what defines what ani…
this is an explanation that accounts for an event or object b…
these include:... - I gave you a gift in order to make you feel…
Define Psuchè:
this is the greek notion that defines what animates or sustai…
Does Psuchè differ from the concept of…
this term differs from it in that it is what defines what ani…
29 terms
Fundamental Accounting Principles Ch. 23 Flexible Budgets and Standard Costs
Benchmarking
Budget Report
Budgetary Control
Controllable Variance
Practice of comparing and analyzing company financial perform…
Contain relevant information that compares actual results to…
Management's use of budgets to monitor and control a company'…
The difference between actual overhead costs incurred and the…
Benchmarking
Practice of comparing and analyzing company financial perform…
Budget Report
Contain relevant information that compares actual results to…
22 terms
Chapter 9: Fundamental Legal Principles
Principle of Indemnity
Purpose of Indemnity
Actual Cash Value
Methods to Determine Actual Cash Value
States that the insurer agrees to pay no more than the actual…
- to prevent the insured from profiting from a loss... - to redu…
Determines the indemnification at the time of loss
- replacement cost less depreciation... - fair market value... - br…
Principle of Indemnity
States that the insurer agrees to pay no more than the actual…
Purpose of Indemnity
- to prevent the insured from profiting from a loss... - to redu…
15 terms
Chapter 9: Fundamental Legal Principles
Principle Indemnity
The actual cash value
Fair market Value
Broad evidence rule
The insurer agrees to pay no more than the actual amount of t…
determinded by ... 1.)Replacement cost - Depreciation... 2.) Fair m…
The price a willing buyer would pay a willing seller in a fre…
The determination of ACV should include all relevant factors…
Principle Indemnity
The insurer agrees to pay no more than the actual amount of t…
The actual cash value
determinded by ... 1.)Replacement cost - Depreciation... 2.) Fair m…
15 terms
CH 21 Accounting Princ. Vocab
absorption costing
Break-even point*
composite units
contribution margin per unit*
costing method the assigns both variable and fixed costs to p…
when a company sells enough to cover expenses but not make a…
the specific number of units of each product needed o break e…
the amount by which a product's unit selling price exceeds it…
absorption costing
costing method the assigns both variable and fixed costs to p…
Break-even point*
when a company sells enough to cover expenses but not make a…
28 terms
Fundamentals of accounting Final vocabulary
Assets
Business entity assumption
Chart of accounts
Conservatism constraint
Resources a business owns or controls that are expected to pr…
Principle that requires a business to be accounted for separa…
List of accounts idea by a company; include an identification…
Principle that prescribes the leas optimistic estimate when t…
Assets
Resources a business owns or controls that are expected to pr…
Business entity assumption
Principle that requires a business to be accounted for separa…
43 terms
FIN 3204 - CH.9: Fundamental Legal Principles
principle of indemnity
moral hazard
actual cash value
fair market value
-the insurer agrees to pay no more than the actual amount of…
dishonesty or character defects in an individual that increas…
-in property insurance, indemnification is based on the _ __…
-the price a willing buyer would pay a willing seller in a fr…
principle of indemnity
-the insurer agrees to pay no more than the actual amount of…
moral hazard
dishonesty or character defects in an individual that increas…
19 terms
Chp 9: Fundamental Legal Principles
Principle of Indemnity
3 methods - Actual Cash Value (ACV)
Fair Market Value
Broad evidence rule
def: insurer agrees to pay no more than the actual amount of…
1. replacement cost less depreciation... 2. Fair Market Value... 3.…
price a willing buyer would pay a willing seller in free market
the determination of ACV should include all relevent factors…
Principle of Indemnity
def: insurer agrees to pay no more than the actual amount of…
3 methods - Actual Cash Value (ACV)
1. replacement cost less depreciation... 2. Fair Market Value... 3.…
28 terms
Fundamental Accounting Principles 21st Edition Chapter 3 & 4
What is a trial balance?
What is the purpose of the closing pro…
What are permanent accounts?
What are long-term investments?
A list of accounts and their balances at a point in time. Tot…
To prepare the accounts for recording the transactions of the…
Accounts that reflect activities related to one or more futur…
Long-term assets not used in operating activities such as not…
What is a trial balance?
A list of accounts and their balances at a point in time. Tot…
What is the purpose of the closing pro…
To prepare the accounts for recording the transactions of the…
655 terms
Glossary of FUNDAMENTAL ACCOUNTING PRINCIPLES 20th edition - John J. Wild, Ken W. Shaw, Barbara Chiappetta (McGraw-Hill, 2011)
Absorption costing
Accelerated depreciation method
Account
Account balance
Costing method that assigns both variable and fixed costs to…
Method that produces larger depreciation charges in the early…
Record within an accounting system in which increases and dec…
Difference between total debits and total credits (including…
Absorption costing
Costing method that assigns both variable and fixed costs to…
Accelerated depreciation method
Method that produces larger depreciation charges in the early…
36 terms
Fundamental Ethics
Autonomy
Beneficence
Nonmaleficence
Justice
Commitment to include patients ... in decisions
Taking positive actions to help others
Avoidance of harm or hurt
Being fair ... ex. organ transplants, health insurance, hospital…
Autonomy
Commitment to include patients ... in decisions
Beneficence
Taking positive actions to help others
8 terms
COST 6 - fundamental of product and service costing
keys to a good manufacturing system
purpose of the cost management system
cost management system accumulates and…
cost information for managerial purposes
oriented to the needs of the decision makers.... designed so tha…
to provide information about costs relevant for decision making
costs about processes, products, and services
must meet cost-benefit test
keys to a good manufacturing system
oriented to the needs of the decision makers.... designed so tha…
purpose of the cost management system
to provide information about costs relevant for decision making
38 terms
Chapter 9: Fundamental Legal Principles
principle of indemnity definition
purpose of the principle of indemnity
actual cash value
there are three main methods to determ…
the insurer agrees to pay the actual amount of the loss, no m…
to prevent the insured from profiting from a loss and to redu…
In property insurance, indemnification is based on the ______…
1. replacement cost less depreciation= traditional actual cas…
principle of indemnity definition
the insurer agrees to pay the actual amount of the loss, no m…
purpose of the principle of indemnity
to prevent the insured from profiting from a loss and to redu…
37 terms
Chapter 18 Accounting Princ. Vocab
Control
Controllable vs not controllable cost
Conversion costs
cost object
The process of monitoring: ... measurement... evaluation... oversight
Depends on what you are responsible for... Ex: senior management…
=direct labor + factory overhead (because they are associated…
the product, process, department, or customer in which the co…
Control
The process of monitoring: ... measurement... evaluation... oversight
Controllable vs not controllable cost
Depends on what you are responsible for... Ex: senior management…
19 terms
CH 17 Accounting Princ. Vocab
Business segment
common-size financial statement
comparative financial statements
Efficiency
Part of the company that can be separately identified by the…
Statement the expresses each amount as a percent of a base am…
Statement with data for two or more successive periods places…
Company's productivity is using its assets; usually measured…
Business segment
Part of the company that can be separately identified by the…
common-size financial statement
Statement the expresses each amount as a percent of a base am…
33 terms
Chapter 10 fundamentals of accounting
Plant assets
acquisition
use
disposal
tangible in nature ... -useful life longer than 1 year... -called p…
compute total cost
-allocate cost to period benefited ... -account for subsequent e…
record disposal
Plant assets
tangible in nature ... -useful life longer than 1 year... -called p…
acquisition
compute total cost
1 of 10