Definitions - Chapter 4

Questão	Responda
Statement of Financial Position (SFP)	A summary statement of the assets and liabilities of an organization at a single point in time
Operating Cyle	Average length of time from the expenditure of cash for inventory or raw materials, to the POS and the collection of cash or A/R.
Current Asset	An asset that is expected or available to be converted to cash or to be used in production within one year or the operating cycle; whichever is loner
Current Liability	A liability die within one year or one operating cycle; whichever is longer
Liquidity	Evidence of a company's ability to pay short-term debts from its current assets and to meet short term obligations
Return on Investment (ROI)	A commonly used family of ratios; can be measured in different ways
Return on Assets	Ho much the company earns from each dollar invested in assets
Cash Equivalents	Short-term, highly liquid investments
Tangible Capital Assets/Fixed Assets	Includes all property, plants, equipment used in the production of services directly and indirectly
Investment Property	Any land or buildings that are held for rental or capital appreciation
Intangible Assets	Long-lived assets that lack physical substance
Long-Term Liability	An obligation that is due beyond the next operating cycle or during the next reporting year, whichever is longer
Statement of Changes in Equity	Discloses component of equity and and the changes in each component during the reporting period
Contributed Surplus	Aka additional paid-in capital, includes shareholder-related transactions. Source include transactions
Reserves	A sublclassification of retained earnings; 1. two types: restrictions 2. appropriations
Restrictions	a reserve mandated by the provisions of a a statute
Appropriations	A voluntary reserve created by the B.O.D.
Recycled	OCI is segregated into items that will be reclassified into earnings in future periods
Disclosure Notes	An integral part of the financial reporting process and must be presented to ensure statements are complete
Measurement Uncertainty	The extent to which errors in significant can affect financial statements
Contingency	An event or transaction that will occur only if some other event happens
Guarantee	An agreement by the reporting enterprise to pay compensation, undertake to preform services, or assume the obligation of another entity under uncertain conditions; a type of contingency given special attention because they are common in business
Performance Guarantee	A promise to make good on nonperformance
Indemnification	A promise to remedy any deficiencies or shortfall of assets held by another entity
Operating Segment	3 Characteristics: 1. Engages i business activities that may generate revenues and incur expense, 2. Discrete financial info is available for the segment, 3. Operating results are reviewed regularly by the entity's chief operating decision maker
Reportable Segment	Must meet at least one of the following conditions: 1. Revenue to external customers is at least 10% of total revenue 2. Assets are 10% or more of total assets 3. Absolute value of its profit or loss is 10% more than the combine earnings of all operating segments that did not report a loss or the combined reported loss of all operating segments that reported a loss
Related Party Transaction	A transaction where one of the parties has the ability to influence the actions and policies of the other
Adjusting Events	Events that occur after year-end that require the company to make adjustments tot he financial statements
Non-Adjusting Events	Events that do not require modification to year-end results

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Definitions - Chapter 4

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	Criado por Kelsey Topola mais de 7 anos atrás