WGU D774
1. Accounting Equation: An algebraic equation that expresses
the relationship between assets (resources), liabilities
(obligations), and owner's equity (net assets, or the residual
interest in a business after all liabilities have been met): Assets =
Liabilities + Owners' Equity.
2. Activity-based Costing (ABC): A method of attributing
overhead costs to products based on measurable factors that
relate to activities that create overhead costs.
3. Agency Problem: A conflict that arises when an agent
(management), who is expected to act in the best interests of a
principal (shareholders), has an incentive to act in their own best
interest instead.
4. Articulation: The interrelationships among the financial
statements.
5. Assets: Economic resources that are owned or controlled by a
company.
6. Balance Sheet: A summary of the financial position of a
company at a particular date.
7. Board of Directors: A group of individuals elected by the
stockholders to govern a corporation.
8. Break-even Point: The amount of sales at which total costs of
the number of units sold equal total revenues; the point at which
there is no profit or loss.
9. Budget: A financial spending and income plan for a defined
period that outlines how a firm, an organization, or an individual
will acquire and use financial resources.
, 10. Capital: Financial assets that an individual or organization
uses for investment or generating profit.
11. Capital Stock: The portion of stockholder's equity that
represents investment by owners in exchange for shares of stock;
also referred to as paid-in capital.
12. Cash Budget: A schedule of expected cash receipts and
disbursements during the budget period.
13. Cash Flow Statement: The financial statement that shows
an entity's cash inflows (receipts) and outflows (payments) during
a period of time.
14. Certified Public Accountant (CPA): A special designation
given to an accountant who has passed a national uniform
examination and has met other certifying requirements.
15. Classified Balance Sheet: A balance sheet that
distinguishes between current and long-term assets.
16. Common-size Financial Statements: Financial statements
achieved by dividing all financial statement numbers by total
sales for the year.
17. Comparative Balance Sheet: A balance sheet that includes
information for both the current year and preceding year(s) that
are prepared for users to identify any significant changes in
particular items.
18. Contribution Margin: The difference between total sales
and variable costs; the portion of sales revenue available to cover
fixed costs and provide a profit.
19. Corporation: An organization that combines resources, skills,
capital, labor, and knowledge to provide goods and services to a
market in pursuit of profit.
1. Accounting Equation: An algebraic equation that expresses
the relationship between assets (resources), liabilities
(obligations), and owner's equity (net assets, or the residual
interest in a business after all liabilities have been met): Assets =
Liabilities + Owners' Equity.
2. Activity-based Costing (ABC): A method of attributing
overhead costs to products based on measurable factors that
relate to activities that create overhead costs.
3. Agency Problem: A conflict that arises when an agent
(management), who is expected to act in the best interests of a
principal (shareholders), has an incentive to act in their own best
interest instead.
4. Articulation: The interrelationships among the financial
statements.
5. Assets: Economic resources that are owned or controlled by a
company.
6. Balance Sheet: A summary of the financial position of a
company at a particular date.
7. Board of Directors: A group of individuals elected by the
stockholders to govern a corporation.
8. Break-even Point: The amount of sales at which total costs of
the number of units sold equal total revenues; the point at which
there is no profit or loss.
9. Budget: A financial spending and income plan for a defined
period that outlines how a firm, an organization, or an individual
will acquire and use financial resources.
, 10. Capital: Financial assets that an individual or organization
uses for investment or generating profit.
11. Capital Stock: The portion of stockholder's equity that
represents investment by owners in exchange for shares of stock;
also referred to as paid-in capital.
12. Cash Budget: A schedule of expected cash receipts and
disbursements during the budget period.
13. Cash Flow Statement: The financial statement that shows
an entity's cash inflows (receipts) and outflows (payments) during
a period of time.
14. Certified Public Accountant (CPA): A special designation
given to an accountant who has passed a national uniform
examination and has met other certifying requirements.
15. Classified Balance Sheet: A balance sheet that
distinguishes between current and long-term assets.
16. Common-size Financial Statements: Financial statements
achieved by dividing all financial statement numbers by total
sales for the year.
17. Comparative Balance Sheet: A balance sheet that includes
information for both the current year and preceding year(s) that
are prepared for users to identify any significant changes in
particular items.
18. Contribution Margin: The difference between total sales
and variable costs; the portion of sales revenue available to cover
fixed costs and provide a profit.
19. Corporation: An organization that combines resources, skills,
capital, labor, and knowledge to provide goods and services to a
market in pursuit of profit.
