Intermed Acct Ch 4

Front 1

Report that measures success of company for given time period

Back 1

Income statement

Front 2

Income statement helps users of financ stmts to...

Back 2

Eval past and predict future performance, assess risk or uncertainty of achieving future cash flow

Front 3

Limits of income stmt

Back 3

Comp omit unmeasurable items; acct methods used affect income numbers; inc measuremt involves judgment

Front 4

Planned timing of revenues, expenses, gains and loss to smooth out earnings; decrease current earning to increase income in future

Back 4

Earnings management

Front 5

Affected negatively by earnings mgmt; trust from users that info is more useful for predicting future earning and cash flows

Back 5

Quality of earnings

Front 6

Method of income measurement that focuses on inc-related activ that occurred during period

Back 6

Transaction approach

Front 7

Inflows, enhancemt of assets or settlement of liab from deliver good or service

Back 7

Revenue

Front 8

Outflow, use up of asset or incur liab from producing goods/service

Back 8

Expense

Front 9

Increase in equity from peripheral transactions EXCEPT those resulting from revs or investmt by owners

Back 9

Gain

Front 10

Decreases in equity from peripheral transactions EXCEPT those resulting from exp or distribut to owners

Back 10

Losses

Front 11

Stmt including oper section, non-oper section, income tx, disc oper, non-control interest and EPS

Back 11

Multi-step Income stmt

Front 12

Report of Revs and Exps of principal ops; sales or revs, COGS, Sell/admin exps

Back 12

Operating section

Front 13

Report of revs/exps from co’s secondary activity; Other revs/G, Other exps/L

Back 13

Nonoperating section

Front 14

Section to report fed/state tax on cont ops

Back 14

Income tax

Front 15

Material G/L from disposing of component of comp

Back 15

Discontinued operations

Front 16

Allocate income to noncontrolling shareholders

Back 16

Noncontrolling interest

Front 17

Measure of performance over reporting period

Back 17

Earnings per share

Front 18

Stmt consist of two groups: revs and exps; adv- simple present, no rev or exp has priority

Back 18

Single-step income stmt

Front 19

Reporting only on regular and recurring revs and exps

Back 19

Current operat performance approach

Front 20

Reporting most items, including unusual events as part of income; incl. unusual/infreq G/L, disc ops, non-control int, EPS

Back 20

Modified all-inclusive concept

Front 21

When comp eliminates component ops of business (cash flow clearly set apart) OR eliminates component to rep a strategic shift with major effect

Back 21

Discontinued operations

Front 22

Allocation of tax w/i income statement of a period; recognizes income tax as a real expense

Back 22

Intraperiod tax allocation

Front 23

Portion of equity interest in subsid NOT attribut to parent comp

Back 23

Noncontrolling interest

Front 24

Net income-pref div (dec/cumul) divided by common shares outstanding

Back 24

EPS

Front 25

Change in reporting, retroactive

Back 25

Change in acct principle

Front 26

Change in acct, prospective, don’t reflect errors; doesn’t affect R/E

Back 26

Change in acct estimates

Front 27

Change in acct, requiring PPA; net of tax; some wash, not all

Back 27

Correction in errors

Front 28

Amount of r/e restricted transferred to an account; two separate amounts- R/E free, R/E appropr- total equals R/E

Back 28

Appropriated R/E

Front 29

All changes in equity except those resulting from investmt by owner or distrib to owner

Back 29

Comprehensive income

Front 30

Non-owner changes in equity that bypass income stmt

Back 30

Other comp income

Front 31

Stmt of changes in S/E; contribut and distrib to owners, reconciling of carrying amt of each component from beg to end

Back 31

Stmt of S/E

Front 32

Beg balance plus unrealized, net of tax; listed on Balance sheet after R/E

Back 32

Accumulated other comp inc