C213 Accounting for Decision Makers
(VAC2 Terms)
"Other Assets"
Long-term assets that are not suitable for reporting under any of the previous
classifications
Accounting
A system of providing "quantitative information, primarily financial in nature,
about economic entities that is intended to be useful in making economic
decisions."
Accounting Equation
Assets = Liabilities + Owners' Equity
Accounts Payable
The flip side of accounts receivable—when one company sells on credit, creating
for itself an account receivable, the company on the other side of the transaction
is buying on credit, creating an account payable.
Accounts Receivable
Amounts owed to a business by its credit customers and are usually collected in
cash within 10 to 60 days.
Accrual Accounting
The process that accountants use in adjusting raw transaction data into refined
measures of a firm's economic performance.
Accumulated Depreciation
,Reflects the wear and tear, or depreciation, of these items since they were
originally purchased.
Accumulated Other Comprehensive Income
The grouped together and reported changes which companies experience
increases and decreases in equity each year because of the movement of
market prices or exchange rates
Activity-based Costing (ABC)
A method of attributing overhead costs to products based on measurable factors
that relate to activities that create overhead costs.
Additional Paid-in Capital
Invested by stockholders that exceeds the par value of the issued shares.
American Institute of Certified Public Accountants (AICPA)
The professional organization of certified public accountants in the United States.
Asset
Probable future economic benefit obtained or controlled by a particular entity as a
result of past transactions or events.
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.
Asset Turnover
Sales divided by assets and is interpreted as the number of dollars in sales
generated by each dollar of assets.
, 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
Assets-to-equity Ratio
Assets divided by equity and is interpreted as the number of dollars of assets
acquired for each dollar invested by stockholders.
Audit Committee
Members of a company's board of directors who are responsible for dealing with
the external and internal auditors.
Average Collection Period
Shows the average number of days that elapse between sale and cash
collection.
Balance Sheet
A listing of an organization's assets and of its liabilities at a certain time.
Batch-level Activities
Activities that take place in order to support a batch or production run, regardless
of the size of the batch.
Book Value
The book value of an asset is the asset's cost minus the asset's accumulated
depreciation.
Bookkeeping
(VAC2 Terms)
"Other Assets"
Long-term assets that are not suitable for reporting under any of the previous
classifications
Accounting
A system of providing "quantitative information, primarily financial in nature,
about economic entities that is intended to be useful in making economic
decisions."
Accounting Equation
Assets = Liabilities + Owners' Equity
Accounts Payable
The flip side of accounts receivable—when one company sells on credit, creating
for itself an account receivable, the company on the other side of the transaction
is buying on credit, creating an account payable.
Accounts Receivable
Amounts owed to a business by its credit customers and are usually collected in
cash within 10 to 60 days.
Accrual Accounting
The process that accountants use in adjusting raw transaction data into refined
measures of a firm's economic performance.
Accumulated Depreciation
,Reflects the wear and tear, or depreciation, of these items since they were
originally purchased.
Accumulated Other Comprehensive Income
The grouped together and reported changes which companies experience
increases and decreases in equity each year because of the movement of
market prices or exchange rates
Activity-based Costing (ABC)
A method of attributing overhead costs to products based on measurable factors
that relate to activities that create overhead costs.
Additional Paid-in Capital
Invested by stockholders that exceeds the par value of the issued shares.
American Institute of Certified Public Accountants (AICPA)
The professional organization of certified public accountants in the United States.
Asset
Probable future economic benefit obtained or controlled by a particular entity as a
result of past transactions or events.
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.
Asset Turnover
Sales divided by assets and is interpreted as the number of dollars in sales
generated by each dollar of assets.
, 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
Assets-to-equity Ratio
Assets divided by equity and is interpreted as the number of dollars of assets
acquired for each dollar invested by stockholders.
Audit Committee
Members of a company's board of directors who are responsible for dealing with
the external and internal auditors.
Average Collection Period
Shows the average number of days that elapse between sale and cash
collection.
Balance Sheet
A listing of an organization's assets and of its liabilities at a certain time.
Batch-level Activities
Activities that take place in order to support a batch or production run, regardless
of the size of the batch.
Book Value
The book value of an asset is the asset's cost minus the asset's accumulated
depreciation.
Bookkeeping
