Accounting Chapter 1 Vocabulary

Operating activities – Main revenue producing activities
Preferred stock – Gives its owners certain advantages over common stockholders. They receive dividends before the common stockholders and they also receive assets before the common stockholders if the corporation liquidates. This type of stock is rare
Fiscal period – Accounting period
What is "Trade off"? – A trade-off is an exchange of part of one characteristic for part of another.
Accountant – one who is concerned with the design of the system of records, the preparation of reports based upon the recorded data, and the interpretation of the reports.
Journal – A book of original entry in which business transactions are recorded in chronological order
physical, mechanical, electrical controls – safeguarding assets
GAAP – Generally accepted accounting principals
Temporary Account – An account whose balance is transferred to another account at the end of an accounting period.
A balance sheet shows: – D. Assets, Liabilities, and Stockholders' Equity
Approximately, what percentage of the Earth's surface is covered with water?
long term assets – Fixed assets
materiality – judgment on weather an items size makes a difference
miscellaneous expenditure – sonstige Aufwendungen
Capital – The net value of an owners financial interest in a business
notes – valuing noncurrent receivables and payables that carry no stated interest rate or a lower than market interest rate
list 5 of the generally accepted accounting principles – cost
going concern
matching
conservatism
materiality
full disclosure
consistency
objective evidence
Apprоximаtely, whаt percentаge оf the Earth's surface is cоvered with water?
Entity – Anything having its own separate identity, such as an individual, a town, a university, or a business.
auditor – Wirtschaftsprüfer, Rechnungsprüfer
All of the following statements are true regarding convergence of U.S. GAAP with IFRS except:

A. IFRS tends to be less stringent in its disclosure requirements than U.S. GAAP.

B. The IASB has looked to the United States to determine the structure it should follow in establishing IFRS.

C.Foreign companies that trade shares in U.S. markets are required to reconcile their accounting with U.S. GAAP under these convergence efforts.

D.The standard-setting structure for IFRS is very similar to the standard-setting structure in the United States – C.Foreign companies that trade shares in U.S. markets are required to reconcile their accounting with U.S. GAAP under these convergence efforts.

Balance sheet – A statement at one point in time which shows all resources controlled and obligations due

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