FAR Module 9A

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  1. Accounting Standards Codification (ASC)
    The single source for all US GAAP.
  2. Accrual
    Recognition precedes cash receipt/expenditure
  3. Accrual Basis
    Expenses are regognized as related revenues are recognized.
  4. Cash Basis
    Recognizes income when sach is received and expenses when cash is disbursed.
  5. Current Cost
    The amount of cash, or its equivalent, that would be paid if the same asset were to be acquired currently.
  6. Current Market Value
    The amount of cash, or its equivalent, that could be obtained by selling as asset in orderly liquidation.
  7. Deferral
    Cash receipt/expenditure precedes accrual-basis recognition.
  8. Fair Value
    The price that would be received to sell an sset or paid to transfer a liability in an orderly tansaction between market participants at the measurement date under current market conditions.
  9. Historical Cost
    The amount of cash, or its equivalent, paid to aquire an asset.
  10. Installment Sales
    Revenue is recognized as cash is collected.
  11. Net Realizable Value
    The nondiscounted amount of cash, or its equivalent, into which an asset is expected to be converted during the normal course of business less direct costs to make the conversion.
  12. Period Costs
    Costs not particularly or conveniently assignable to a product.
  13. Present Value
    The current measure of an estimated future cash inflow or outflow, discounted at an interest rate for the number of periods between today and the date of the estimated cash outflow.
  14. Product Costs
    Costs which can be associated with particular sales.
  15. Realized (Realizable)
    When related assets received or held are readily convertible into known amounts of cash or claims to cash.
  16. Risk Adverse
    Market place participants prefer situations with less uncertainty relative to an expected outcome.
  17. Start-up costs
    The costs incurred during the course of undertaking on-time activities related to opening a new facility.
  18. Prospective Application
    The change is accounted for in the current period and future periods.
  19. Restatement
    The process of revising previously issued financial statements to correct an error.
  20. Retrospective Application
    The application of a different accounting principle to previously issued financial statements, as if that principle had always been used.
Card Set
FAR Module 9A
Basic Theory and Financial Reporting A. and C.
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