accounting stice vocabulary ch 1b.txt

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.

A quality of useful accounting information requiring that accounting methods be followed consistently from one period to the next.

Outside parties who are owed money by a company.

The cash equivalent price that would be paid currently to purchase or replace goods or services.

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.

A specific reporting unit, separate and distinct from its owners or other entities.

Emerging Issues Task Force

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.

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.

The cash equivalent price that could be obtained by selling an asset in an orderly transaction.

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.

The activity associated with the development and communication of financial information for external users.

Financial Accounting Foundation

An organization responsible for selecting members of the FASB, GASB, and their advisory councils.

Financial Accounting Standards Board

Responsible for studying accounting issues and establishing accounting standards to govern financial reporting in the United States.