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10 Cards in this Set

  • Front
  • Back
What is the all-inclusive concept?
all items that increase or decrease a company's owners' equity during a period (except dividends & capital transactions) are included in net income

Now generally accepted.
What publication addresses extraordinary items?
APB Opinion #30
What is financial flexibility?
the ability of a company to adapt to unexpected needs and opportunities
What does FASB Statement #95 address?
requires a company to present a statement of cash flows for the accounting period with its income statement and balance sheet
What are losses?
decreases in a company's equity (net assets) from peripheral or incidental transactons of the company that are not a result of expenses or distributions to owners
What is comprehensive income?
change in equity of a company during a period from transactions and other events and circumstances from nonowner sources.
What are the most common cash inflows?
collections from customers
dividends & interest received
What are the 3 classes of losses and gains?
1. exchange of items
2. changes in value while items are held
3. nonreciprocal transfers between a company and nonowners
What is the accrual basis?
The impact of any change is recorded in the period in which it occurs, rather than when cash is paid or received by the company.
What is the formula for net income via the accural basis?
Net Income = Revenues - Expenses + Gains - Losses