WGU D103 INTERMEDIATE ACCOUNTING I UNIT 2-4
APB Opinions - Answer -The APB's official pronouncements issued from 1959 through
1973 which were intended to be based mainly on research studies and be supported by
reasons and analysis.
Accounting Principles Board (APB) - Answer -An accounting rule-making board which
provided official pronouncements, called APB Opinions, from 1959 through 1973.
Accounting Research Bulletins - Answer -Pronouncements issued by CAP dealing with
a variety of timely accounting problems during the years 1939 to 1959.
Accrued Expenses - Answer -Expenses incurred but not yet paid.
Accrued Revenues - Answer -Revenues for which the performance obligation has been
satisfied, but for which cash has not yet been received.
Adjusted Trial Balance - Answer -A trial balance prepared immediately after all
adjustments have been posted.
Adjusting Entries - Answer -Entries made at the end of an accounting period to bring all
accounts up to date on an accrual accounting basis.
American Institute of Certified Public Accountants (AICPA) - Answer -The national
professional organization of practicing Certified Public Accountants.
Book Value - Answer -The difference between the cost of an asset and its related
accumulated depreciation.
Closing Process - Answer -The formal process by which all nominal accounts are
reduced to zero to prepare the accounts for the next period's transactions.
Committee On Accounting Procedure (CAP) - Answer -An organization composed of
practicing CPAs which issued Accounting Research Bulletins dealing with a variety of
accounting problems during the years 1939 to 1959.
Contra Asset Account - Answer -An account that offsets an asset account on the
balance sheet.
Cost Constraint - Answer -The constraint that states that information should be
provided only if the benefits of providing such information outweigh the costs of
providing it.
Cost-benefit Relationship - Answer -The costs of something weighed against the
benefits that can be derived.
, Current Assets - Answer -Cash and other assets expected to be converted into cash,
sold, or consumed either in one year or in the operating cycle, whichever is longer.
Current Liabilities - Answer -Obligations that are reasonably expected to be liquidated
either through the use of current assets or the creation of other current liabilities within
the longer of 1 year or the operating cycle.
Current Operating Performance Approach - Answer -A concept that states that the net
income figure should show only the regular, recurring earnings of the business.
Depreciation - Answer -The process of allocating the cost of an asset to expense over
its useful life in a rational and systematic manner.
Discontinued Operation - Answer -The disposal of a component of a business or the
elimination of a component that represents a strategic shift.
Earnings Management - Answer -The planned timing of revenues, expenses, gains,
and losses.
Earnings Per Share - Answer -The net income earned by each share of outstanding
common stock.
Economic Entity Assumption - Answer -An assumption that states economic activity
can be identified with a particular unit of accountability.
Expense Recognition Principle - Answer -The recognition of expenses is related to
revenues; "Let the expense follow the revenue."
Fair Value - Answer -Defined as "the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between market participants at the
measurement date."
Fair Value Principle - Answer -Defined as "the amount for which an asset could be
exchanged, a liability settled, or an equity instrument granted could be exchanged,
between knowledgeable, willing parties in an arm's length transaction."
Faithful Representation - Answer -The numbers and descriptions represent what really
existed or happened.
Financial Accounting Standards Board (FASB) - Answer -A seven member board
created in 1973, which currently establishes and improves standards of financial
accounting and reporting for the guidance and education of the public.
Comparability - Answer -Ability to compare accounting information of different
companies because they measure and report information in a similar manner.
APB Opinions - Answer -The APB's official pronouncements issued from 1959 through
1973 which were intended to be based mainly on research studies and be supported by
reasons and analysis.
Accounting Principles Board (APB) - Answer -An accounting rule-making board which
provided official pronouncements, called APB Opinions, from 1959 through 1973.
Accounting Research Bulletins - Answer -Pronouncements issued by CAP dealing with
a variety of timely accounting problems during the years 1939 to 1959.
Accrued Expenses - Answer -Expenses incurred but not yet paid.
Accrued Revenues - Answer -Revenues for which the performance obligation has been
satisfied, but for which cash has not yet been received.
Adjusted Trial Balance - Answer -A trial balance prepared immediately after all
adjustments have been posted.
Adjusting Entries - Answer -Entries made at the end of an accounting period to bring all
accounts up to date on an accrual accounting basis.
American Institute of Certified Public Accountants (AICPA) - Answer -The national
professional organization of practicing Certified Public Accountants.
Book Value - Answer -The difference between the cost of an asset and its related
accumulated depreciation.
Closing Process - Answer -The formal process by which all nominal accounts are
reduced to zero to prepare the accounts for the next period's transactions.
Committee On Accounting Procedure (CAP) - Answer -An organization composed of
practicing CPAs which issued Accounting Research Bulletins dealing with a variety of
accounting problems during the years 1939 to 1959.
Contra Asset Account - Answer -An account that offsets an asset account on the
balance sheet.
Cost Constraint - Answer -The constraint that states that information should be
provided only if the benefits of providing such information outweigh the costs of
providing it.
Cost-benefit Relationship - Answer -The costs of something weighed against the
benefits that can be derived.
, Current Assets - Answer -Cash and other assets expected to be converted into cash,
sold, or consumed either in one year or in the operating cycle, whichever is longer.
Current Liabilities - Answer -Obligations that are reasonably expected to be liquidated
either through the use of current assets or the creation of other current liabilities within
the longer of 1 year or the operating cycle.
Current Operating Performance Approach - Answer -A concept that states that the net
income figure should show only the regular, recurring earnings of the business.
Depreciation - Answer -The process of allocating the cost of an asset to expense over
its useful life in a rational and systematic manner.
Discontinued Operation - Answer -The disposal of a component of a business or the
elimination of a component that represents a strategic shift.
Earnings Management - Answer -The planned timing of revenues, expenses, gains,
and losses.
Earnings Per Share - Answer -The net income earned by each share of outstanding
common stock.
Economic Entity Assumption - Answer -An assumption that states economic activity
can be identified with a particular unit of accountability.
Expense Recognition Principle - Answer -The recognition of expenses is related to
revenues; "Let the expense follow the revenue."
Fair Value - Answer -Defined as "the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between market participants at the
measurement date."
Fair Value Principle - Answer -Defined as "the amount for which an asset could be
exchanged, a liability settled, or an equity instrument granted could be exchanged,
between knowledgeable, willing parties in an arm's length transaction."
Faithful Representation - Answer -The numbers and descriptions represent what really
existed or happened.
Financial Accounting Standards Board (FASB) - Answer -A seven member board
created in 1973, which currently establishes and improves standards of financial
accounting and reporting for the guidance and education of the public.
Comparability - Answer -Ability to compare accounting information of different
companies because they measure and report information in a similar manner.
