Flashcards
Definitions - Chapter 3
Cards in this deck (26)
- 1IncomeAll amounts flowing into the entity through operations; revenue and gains
- 2Net IncomeProfit/loss
- 3Economic IncomeBased on an events approach; how a company accounts for the changes in the value of an asset. Generally recognizes unrealized gains.
- 4Accounting IncomeBased on a transaction approach; tied to historical or carrying cost
- 5Comprehensive IncomeAll changes to owner's equity that are not the result of transactions with the owners/shareholders in their capacity as owners
- 6Statement of Comprehensive Income (SCI)Starts with revenue, goes down tot a total of net profit or loss after tax and continues on to OCI items. Can also be two statements: 1. net profit/loss, 2. SCI that begins with profit/loss as the first line
- 7"Nature of Expense"An alternative for presenting the profit/loss section; classifies times based on nature of the expense (basis of input costs)
- 8"Function Within the Enterprise"An alternative for presenting the profit/loss section; classifies times based on function of the expense within the enterprise (output costs)
- 9Non-Controlling InterestWhen the parent company owns less than 100% of a subsidiary's shares, the shares held by others outside the consolidated entity
- 10Weighted Average Number of SharesEx. if a company has 10,000 shares at the beginning of the year, and issued 6,00 more at the beginning of the fourth quarter (outstanding with three months):
10,000 x 3/12 = 11,500 - 11Basic EPSTotal net income/weighted average of common shares outstanding.
***NOT BAED ON COMPREHENSIVE INCOME*** - 12Diluted EPSUses the weighted average number of all shares that would have been outstanding if all conversion privileges had been accessed by holders of convertible bonds, preferred shares, etc.
- 13Single-Step StatementA statement that shows one section for "revenues and other income" less another for "expenses and losses"
- 14Multi-Step StatementSubtotals are presented for each section that presents certain types of income or expense
- 15CCTDCurrency translation difference
- 16Intraperiod AllocationThe allocation within the period
- 17Interperiod AllocationAllocation of a company's income tax liability into different reporting periods.
- 18Abandoned AssetAn asset that a company continues to own but has permanently stopped using.
- 19Recoverable AmountHigher of fair value is use and fair value less cost to sell
- 20Idle AssetAn assets company is not using, but only at the moment.
- 21Held-for-Sale AssetWhen an asset is removed from productive use and put on the market. Shown on the SFP as a current asset. Two conditions must be met: 1. available for immediate sale in its present condition 2. sale is highly probable
- 22Declassification as Held-for-SaleWhen a non-current asset no longer meets the criteria to be held-for-sale
- 23Disposal GroupA group of assets being sold together in a single transaction
- 24Discontinued OperationAn operating segment of a company that either: 1. has been sold, or 2. is held-for-sale
- 25Cash-Generating UnitA group of assets that generates cash flows that are largely independent from other assets or group of assets
- 26FlippingBuying an Asset only to resell it
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- COMM 321 - Corporate Accounting Flashcards on Definitions - Chapter 3, created by Kelsey Topola on 03/06/2017.
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- Kelsey Topola
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