Karteikarten
Accounting Definitions
Karten in diesem Stapel (46)
- 1What is Accounting?Accounting is the process of identifying, measuring, recording and communicating financial information in order to permit informed judgements and decisions by users of information.
- 2What is Data?Anything that can be measured and given a value
- 3What is Information?When figures are summarised or rearranged in a structured fashion
- 4Quantitative DateInformations expressed in numerical form and which is measurable
- 5Qualitative InformationAll other information such as legal, social, environmental or ethical matters etc
- 6Financial InformationMay include budgets, ratios, sales results and current interest rates
- 7Non-Financial Informationmay include benchmarks, staff turnover and market share
- 8Relevance?Financial Information mud have value in terms of assisting users in making and evaluating decisions about the allocation of financial, physical and human resources.
- 9ReliabilityFinancial Information must be free from bias and undue error
- 10MaterialityInformation may be relevant in the general operations of an enterprise but might not be of significance when the entity is reporting
- 11ComparabilityThis is achieved by comparing an entity at one point in time and over time or an entity with other entities at one point in time and over time
- 12UnderstandabilityFinancial Information must be presented in a form that assists users in its understanding
- 13TimelinessFinancial Information may lose its relevance if there is a long time span before the information is presented to interested parities.
- 14Cost Vs BenefitsAccountants need to consider whether the provision of certain financial information will stimulate more benefits than the costs incurred.
- 15Internal UsersInclude all levels of management and other governing bodies of an organisation
- 16External UsersInclude present or potential investors and present or potential creditors
- 17ClarifyThe clarification stage involves setting the decision in its context by giving some thought to: objectives, problems diagnosis and constraints
- 18AnalyseThis staff involves doing the research and fact finding necessary to provide a sound base of information to support the decision making: involves information and ideas
- 19ChooseWhere the decision is made. Choices are made between small numbers of alternatives.
- 20ExecuteOnce the decision has been made, you need to be sure it is put into practice and followed up. Finally review the decision to see how well you achieved your objectives following the three steps; planning, controlling and reviewing
- 21Regulatory FrameworksCompanies have to comply with the regulations set out by the Australian Securities and Investments Commision
- 22Accounting EntityAny organisational unit for which accounting records are kept and about which accounting reports are prepared
- 23Legal EntityThe law does not see the separation of the business from the owners in the case of sole proprietors and partnerships.
- 24Reporting EntityAny business or part of a business that prepared a report on its financial activities.
- 25Accounting ProcessThis is the process required to convert raw transaction data to useable information for statement users.
- 26Monetary Unit Concept"Accountants consider only things that can be expressed in monetary terms"
- 27Dual AspectAccountants see total assets as equal to total equities
- 28Accounting EntityAccountants consider a business to be separate and distinct from the owner.
- 29Legal EntityIn the eyes of the law the owner and the business are seen as one in the case of sole traders and partnerships
- 30Going ConcernAccountants assume that a business has an unlimited life and that it will continue to operate in the foreseeable future and in the same general line of business.
- 31Accounting PeriodAccountants split the life of the business up into arbitrary time periods for recording and reporting purposes
- 32Historical CostAccountants normally value assets at the price paid to acquire them
- 33RealisationAccountants recognise revenue when goods or services have been delivered regardless of when cash for these is received.
- 34Accrual AccountingAccountants measure profit on the basis of revenue earned during the period and expenses used or incurred during the period
- 35ConsistencyAccountants consistently apply accounting procedures and policies from one period to the next
- 36PrudenceAccountants should exercise care and caution when dealing with uncertainties in the measurement process.
- 37ReliabilityAccountants should disclose all information relevant to statement users
- 38MaterialityAccountants record and report only those items which are material or important enough to affect the decisions of statement users
- 39define capital budgetingplanning process for exenditure of relatively large sums on long term assets, replacing worn out assets with new ones or developing new business opportunities
- 40Define Operating Budgetdetailed projection of estimated income and expenses based on forecasted revenue during a given period - includes a profit/loss statement, cash flow statement and a balance sheet
- 41define Depreciation:to lower the price or estimated value of , particularly of a long term asset that has dimishing value over time
- 42Net present Value?the difference btw present value of cash inflows at the present value of cash outflows - used to determine whether a project is an acceptable investment
- 43what is difference between financial and managerial accounting?Managerial accounting is concerned with providing information to managers, in contrast to financial accounting, which is concerned with providing information to stockholders and others outside an organization.
- 44T/F - Managerial accounting is governed by generally accepted business accounting principlesFALSE - not governed
- 45Define NEt present ValueValue of a sum of future cash flows presented in today dollars
NPV(i, N) = Sum: R1/(1 +i)^i - 46—
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- Beschreibung
- Board Exam LeadingManageChange (Financial/Strategy) Karteikarten am Accounting Definitions, erstellt von Michael Riben am 18/10/2022.
- Erstellt von
- Michael Riben · Okt 2022
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- 18 Okt 2022
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- Erstellt von Tess Morris · 2 Okt 2013
- Kopiert von Michael Riben · 18 Okt 2022
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