C213 Accounting for Decision Makers (VAC2
Terms)Questions With All Correct & Verified Answers
1. "Other Assets" Long-term assets that are not suitable for reporting under any of the
previous
classifications
2. Accounting A system of providing "quantitative information, primarily financial in natur
about economic entities that is intended to be useful in making economic
de- cisions."
3. Accountin Assets = Liabilities + Owners' Equity
g
Equation
4. Account The flip side of accounts receivable—when one company sells on credit,
s
creating for itself an account receivable, the company on the other side
Payable
of the transaction is buying on credit, creating an account payable.
5. Accounts Amounts owed to a business by its credit customers and are usually
Receiv- able
collected in cash within 10 to 60 days.
6. Accrual Account-
ing The process that accountants use in adjusting raw transaction data
into refined measures of a firm's economic performance.
7. Accumulated
De- preciation Reflects the wear and tear, or depreciation, of these items since they
8. Accumulated were origi- nally purchased.
Other
Comprehensiv The grouped together and reported changes which companies
e Income experience in- creases and decreases in equity each year because of
9. Activity-based the movement of market prices or exchange rates
Costing
(ABC)
A method of attributing overhead costs to products based on
10. Additional
measurable factors that relate to activities that create overhead costs.
Paid-in Capital
Invested by stockholders that exceeds the par value of the issued shares.
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31
,C213 Accounting for Decision Makers (VAC2
Terms)Questions With All Correct & Verified Answers
11. American The professional organization of certified public accountants in the United
Insti- tute of
Certi- fied States.
Public Ac-
countants
(AIC- PA)
12. Asset Probable future economic benefit obtained or controlled by a particular
entity as a result of past transactions or events.
13. Asset Mix The proportion of total assets in each asset category, is determined to a
large
degree by the industry in which the company operates.
14. Asset Turnover Sales divided by assets and is interpreted as the number of dollars in sale
generated by each dollar of assets.
15. Assets Assets are the firm's economic resources, formally defined as "probable
future
economic benefits obtained or controlled by a particular entity as a result of
past transactions or events
16. Assets-to-equity Assets divided by equity and is interpreted as the number of dollars
Ratio
of assets acquired for each dollar invested by stockholders.
17. Audit Committee Members of a company's board of directors who are responsible for
dealing with the external and internal auditors.
18. Average Shows the average number of days that elapse between sale and cash
Collec- tion
Period collection.
19. Balance Sheet A listing of an organization's assets and of its liabilities at a certain time.
20. Batch-level Activ- Activities that take place in order to support a batch or production run,
ities
regardless of the size of the batch.
21. Book Value
2/
31
, C213 Accounting for Decision Makers (VAC2
Terms)
Study online at https://quizlet.com/_7ridr9
The book value of an asset is the asset's cost minus the asset's
accumulated depreciation.
22. Bookkeeping The preservation of a systematic, quantitative record of an activity.
23. Break-even Point The amount of sales at which total costs of the number of units sold equ
total
revenues; the point at which there is no profit or loss.
24. Capital Systematic planning for long-term investments in operating assets.
Budget- ing
25. Capital
Lease A long-term liability in the balance sheet.
Obligations
26. Cash Coins and currency as well as the balances in company checking and
savings
accounts.
27. Cash Budget An important tool in helping management plan its cash needs. This
discussion
briefly introduces you to budgeting cash receipts.
28. Cash Equivalents Short-term, highly liquid investments such as Treasury bills, commercial
paper,
and money market funds.
29. Cash Flow Cash from operations divided by expenditures for fixed asset
Ade- quacy
Ratio additions and acquisitions of new businesses
30. Cash Times Inter- A financial analysis tool that indicates the interest payment ability of an
entity
est Earned Ratio
3/
31
, C213 Accounting for Decision Makers (VAC2
Terms)
31. Certified
Study online at https://quizlet.com/_7ridr9
A person who has taken a minimum number of college-level accounting
Public
Accountant classes, has passed the dreaded CPA exam, and has met other
requirements set by his or her state.
32. Common Stock Stockholders' equity investment
4/
31
Terms)Questions With All Correct & Verified Answers
1. "Other Assets" Long-term assets that are not suitable for reporting under any of the
previous
classifications
2. Accounting A system of providing "quantitative information, primarily financial in natur
about economic entities that is intended to be useful in making economic
de- cisions."
3. Accountin Assets = Liabilities + Owners' Equity
g
Equation
4. Account The flip side of accounts receivable—when one company sells on credit,
s
creating for itself an account receivable, the company on the other side
Payable
of the transaction is buying on credit, creating an account payable.
5. Accounts Amounts owed to a business by its credit customers and are usually
Receiv- able
collected in cash within 10 to 60 days.
6. Accrual Account-
ing The process that accountants use in adjusting raw transaction data
into refined measures of a firm's economic performance.
7. Accumulated
De- preciation Reflects the wear and tear, or depreciation, of these items since they
8. Accumulated were origi- nally purchased.
Other
Comprehensiv The grouped together and reported changes which companies
e Income experience in- creases and decreases in equity each year because of
9. Activity-based the movement of market prices or exchange rates
Costing
(ABC)
A method of attributing overhead costs to products based on
10. Additional
measurable factors that relate to activities that create overhead costs.
Paid-in Capital
Invested by stockholders that exceeds the par value of the issued shares.
1/
31
,C213 Accounting for Decision Makers (VAC2
Terms)Questions With All Correct & Verified Answers
11. American The professional organization of certified public accountants in the United
Insti- tute of
Certi- fied States.
Public Ac-
countants
(AIC- PA)
12. Asset Probable future economic benefit obtained or controlled by a particular
entity as a result of past transactions or events.
13. Asset Mix The proportion of total assets in each asset category, is determined to a
large
degree by the industry in which the company operates.
14. Asset Turnover Sales divided by assets and is interpreted as the number of dollars in sale
generated by each dollar of assets.
15. Assets Assets are the firm's economic resources, formally defined as "probable
future
economic benefits obtained or controlled by a particular entity as a result of
past transactions or events
16. Assets-to-equity Assets divided by equity and is interpreted as the number of dollars
Ratio
of assets acquired for each dollar invested by stockholders.
17. Audit Committee Members of a company's board of directors who are responsible for
dealing with the external and internal auditors.
18. Average Shows the average number of days that elapse between sale and cash
Collec- tion
Period collection.
19. Balance Sheet A listing of an organization's assets and of its liabilities at a certain time.
20. Batch-level Activ- Activities that take place in order to support a batch or production run,
ities
regardless of the size of the batch.
21. Book Value
2/
31
, C213 Accounting for Decision Makers (VAC2
Terms)
Study online at https://quizlet.com/_7ridr9
The book value of an asset is the asset's cost minus the asset's
accumulated depreciation.
22. Bookkeeping The preservation of a systematic, quantitative record of an activity.
23. Break-even Point The amount of sales at which total costs of the number of units sold equ
total
revenues; the point at which there is no profit or loss.
24. Capital Systematic planning for long-term investments in operating assets.
Budget- ing
25. Capital
Lease A long-term liability in the balance sheet.
Obligations
26. Cash Coins and currency as well as the balances in company checking and
savings
accounts.
27. Cash Budget An important tool in helping management plan its cash needs. This
discussion
briefly introduces you to budgeting cash receipts.
28. Cash Equivalents Short-term, highly liquid investments such as Treasury bills, commercial
paper,
and money market funds.
29. Cash Flow Cash from operations divided by expenditures for fixed asset
Ade- quacy
Ratio additions and acquisitions of new businesses
30. Cash Times Inter- A financial analysis tool that indicates the interest payment ability of an
entity
est Earned Ratio
3/
31
, C213 Accounting for Decision Makers (VAC2
Terms)
31. Certified
Study online at https://quizlet.com/_7ridr9
A person who has taken a minimum number of college-level accounting
Public
Accountant classes, has passed the dreaded CPA exam, and has met other
requirements set by his or her state.
32. Common Stock Stockholders' equity investment
4/
31
