Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
35 Cards in this Set
- Front
- Back
|
Canadian Institute of Chartered Accountants (CICA) |
Sets accounting, auditing, assurance standards for business, not-for-profit organizations, and government,and represents the CA profession in Canada |
|
|
Generally Accepted Accounting Principles(GAAP) |
The accounting practices, procedures, and standards used to maintain financial records, reports and statements |
|
|
Accounting Standards Board (AcSB) |
The accounting professions rule-setting body, part of the CICA, that authorizes the generally accepted accounting principles (GAAP) used in Canada |
|
|
Amortization |
The systematic expensing of a portion of the cost of a fixed asset against sales |
|
|
Balance Sheet |
Summary statement of the firms financial position at a given point in time |
|
|
Current Assets |
Short-term assets expected to be converted into cash within 1 year or less |
|
|
Current liabilities |
Short-term liabilities, expected to be paid within 1 year or less |
|
|
Intangible Assets |
Assets that cannot be seen or touched, but are valuable to the company. |
|
|
Goodwill |
The amount paid for a business in excess of the value of assets acquired |
|
|
Stated value |
The actual value of preferred shares when originally sold to investors |
|
|
Common Equity |
The total investment made by the company's owners consisting of the value of common shares plus retained earnings |
|
|
Common Shares |
The total proceeds received from the sale of common shares since the company was formed |
|
|
Retained Earning |
The running total of all earnings, net of dividends, that have been retained and reinvested in the firm since its inception |
|
|
Book Value |
The total value of common equity at the date of the balance sheet. Book value per share is book value divided by the number of common shares outstanding |
|
|
Statement of Retained Earnings |
Details that change in retained earnings from the beginning to the end of the fiscal year
|
|
|
Statement of Cashflows |
Provides a summary of the firms operating, investment, and financing cash flows and reconciles them with changes in its cash and marketable securities during the period of concern |
|
|
Operating Flows |
Cash flows directly related to production and sale of the firms product or services |
|
|
Investment flows |
Cash flows associated with purchase and sale of both fixed assets and business interests |
|
|
Financing Flows |
Cash flows that result from debt and equity financing transactions; include issue and repayment of debt, cash inflow from the sale of stock, and cash outflows to pay cash dividends of repurchase stock |
|
|
Active Business Income |
Income derived from normal business activities of a corporation; the difference between sales and expenses |
|
|
Passive Income |
Income from a specified investment business or from a person services business that is taxed at a higher corporate tax rate |
|
|
Intercorporate dividends |
Dividends received by a corporation from investments in preferred or common shares held in other corporations |
|
|
Capital Gains |
The positive difference between the selling price of a capital asset and the assets original cost plus the costs incurred to sell the asset |
|
|
Capital Assets |
A fixed asset that is amortized, land, or financial assets (common shares, preferred shares, and fixed income securities like bonds) held by a corporation |
|
|
Taxable Capital Gain |
The portion of the capital gain that is taxable, currently the taxable portion is 50% |
|
|
Net Capital Gains |
The difference between capital gains and losses for a tax year; 50% of this amount is taxable |
|
|
CCA Rates |
Rates set by the Canadian Revenue Agency (CRA) that are used to calculate the CCA on an asset class; the rates range from 4 to 100 percent |
|
|
Undepreciated Capital Cost (UCC) |
The undepreciated value of an asset or an asset class that is the basis from the amount of CCA that is claimed;also referred to as the book value of an asset |
|
|
Investment Tax Credit (ITC) |
An incentive for businesses in various regions of the country to purchase certain types of fixed assets or undertake certain types of research and development activities; results in a reduction in federal taxes payable |
|
|
Canadian-Controlled Private Corporation |
A small, private business majority-owned by Canadian residents |
|
|
General rate reduction |
The deduction that most corporations are allowed from the net federal tax rate of 28 percent |
|
|
Small business Deduction |
A 16.5 percent reduction in the net federal tax rate that the federal government allows CCPCs |
|
|
Annual Report |
The report that corporations must provide to common shareholders, that summarizes and documents the firms financial activities during the past year |
|
|
Letter to shareholders |
Typically, the first element of an annual report following a summary of the company's financial performance for the year, and the direct compensation from senior management to the firms owners |
|
|
Managements Discussion and Analysis |
MD&A is a supplemental report that allows the reader to look at the company through the eyes of management by providing a current and historical analysis of the business of the company |
