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18 Cards in this Set
- Front
- Back
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Relevance |
The capacity of information to make a difference in a decision |
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Faithful representation |
The quality of information that makes it complete, neutral, and free from error |
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Understandability |
The quality of accounting info that make it comprehensible to those willing to spend the necessary time. |
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Current Asset |
An asset that is expected to be realized in cash or sold or consumed during the operating cycle or within one year if the cycle is shorter than on year |
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Operating Cycle |
The period of time between the purchase of inventory and the collection of any receivable from the sale of the inventory |
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Depreciation |
The process of allocating the cost of a long-term tangible asset over its useful life |
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Comparability |
For accounting info, the quality that allows a user to analyze two or more companies and look for similarities and differences |
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Current Liability |
An obligation that will be satisfied within the next operating cycle or within one year if the cycle is shorter than one year. |
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Liquidity |
The ability of a company to pay its debts as they come due |
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Working Capital |
Current assets minus current liabilities |
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Gross Profit |
Sales less cost of goods sold |
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Multiple-step income statement |
An income statement that shows classifications of revenues and expenses as well as important subtotales |
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Profit Margin |
Net income divided by sales |
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Auditor's Report OR Report of Independent Accountants |
The opinion rendered by a public accounting firm concerning the fairness of the presentation of the financial statements |
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Best group ever |
Quicksilver |
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Operating Activities |
- Belong on the statement of cash flow - involved the purchase and sale of products or services |
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Investing Activities |
- Belong on the statement of cash flow - involve the acquisition and sale of of long-term assets |
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Financing Activities |
- Belong on the statement of cash flow - involve the issuance & repayment of long-term liabilities and stock and the payment of dividends |
