accounting stice vocabulary ch 1b.txt

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accounting stice vocabulary ch 1b.txt
2015-01-12 18:35:14
accounting stice
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  1. conservatism
    The notion that when doubt exists concerning two or more reporting alternatives, users should select the alternative with the least favorable impact on reported income, assets, and liabilities.
  2. consistency
    A quality of useful accounting information requiring that accounting methods be followed consistently from one period to the next.
  3. creditors
    Outside parties who are owed money by a company.
  4. current replacement cost
    The cash equivalent price that would be paid currently to purchase or replace goods or services.
  5. disclosure
    Reporting the details of a transaction in the notes to the financial statements. Disclosure is sometimes used in place of recognition; that is, instead of including the results of a transaction in the financial statements themselves, it is disclosed in the notes.
  6. economic entity
    A specific reporting unit, separate and distinct from its owners or other entities.
  7. EITF
    Emerging Issues Task Force
  8. Emerging Issues Task Force (EITF)
    A task force of representatives from the accounting profession and industry created by the FASB to take timely action on emerging issues of financial reporting. The EITF identifies significant emerging issues and develops consensus positions when possible.
  9. exposure draft
    A preliminary statement of a standard that includes specific recommendations made by the FASB. Reaction to the Exposure Draft is requested from the accounting and business communities, and the comments received are carefully considered before a final Accounting Standards Update is issued.
  10. fair value
    The cash equivalent price that could be obtained by selling an asset in an orderly transaction.
  11. feedback value
    A key ingredient of relevant accounting information; helps to confirm or change a decision maker’s beliefs based on whether the information matches what was expected.
  12. financial accounting
    The activity associated with the development and communication of financial information for external users.
  13. FAF
    Financial Accounting Foundation
  14. Financial Accounting Foundation (FAF)
    An organization responsible for selecting members of the FASB, GASB, and their advisory councils.
  15. FASB
    Financial Accounting Standards Board
  16. Financial Accounting Standards Board (FASB)
    Responsible for studying accounting issues and establishing accounting standards to govern financial reporting in the United States.