Chapter 13

¡Supera tus tareas y exámenes ahora con Quizwiz!

by signing an unqualified (clean) audit option

a CPA firm assumes part of the financial responsibility for the fairness of the financial statements and related presentations.

accumulated amortization is

a contra-asset account similar to accumulated depreciation, similar to depreciation except it is netted against intangible assets instead of tangible assets

board of directors

a group of persons elected by the stockholders to manage a corporation

How annual repots and 10-K

10-K are more elaborate, both have 4 basic financial statements, both include Report of Independent Accountants (Auditor's Opinion)

Deffered Revenue

A liability created when a business collects cash from customers in advance of completing a service or delivering a product.

10-K include

Business, Selected Financial Data, Management's Discussion and Analysis of Financial Condition and Results of Operations, financial Statements and Supplemental Data

Who has legal responsibility for ensuring the accuracy of accounting information reported in a company's financial statements?

CFO, accounting managers, Accounting staff, CEO

CFO

Chief Financial Officer

EDGAR

Electronic Data Gathering, Analysis, and Retrieval-file forms electronically

significant parts of the financial reporting process

Form 10-K, form 10-Q form 8-K

IFRS

International Financial Reporting Standards- similar to GAAP

Principal components of the financial disclosures in a Form 10-K

Management's discussion and analysis, select summarized financial data for a 5-year period, financial statements and supplemental data

major actors involves in ensuring the integrity of financial statements of a publicly-traded company

Management, PCAOB, Board of Directors, Independent Auditors, SEC

various sources of financial infromation fr the investing public

SEC's EDGAR Service, Companies' Websites, Financial analysts' earnings forecasts

earnings forecasts

are provided by financial analysts to assist in investment decisions

a classified balance sheet shows subtotals for current

assets and current liabilities

institutional investors unclude

charitable foundations, pension funds, mutual funds

CEO

chief executive officer

lenders or creditors include

commercial credit companies, banks and suppliers

free services to access a company's financial info

company's website and SEC's EDGAR

financial statement formats and disclosures

differ slightly among companies

methods that you can use to prepare the statement fo cash flows

direct, indirect

annual reports include

four basic financial statements, related notes (footnotes), Report of Independent Accountants (Auditor's Opinion) if the statements are audited

the fraud triangle's three conditions for necessary for fraud to occur

incentive, opportunity, ability to rationalize and misdeed

Nonoperating Items examples in other words

income tax expense, provision for income taxes, gains on sale of fixed assets

goowdill

intangible asset representing the excess of the price paid for another company over the value of its identifiable assets

Nonoperating Items examples

interest income, interest expenses, gains and losses on the sale of investments

intangible assets

long-term assets (e.g., patents, trademarks, copyrights) that have no real physical form but do have value

financial analysts

make earnings forecasts to assist in investment decisions

who has responsibility to apply accounting standards when communicating with investors and creditors

management

publicly traded corporations' financial statement disclosures

may go beyond what id required by GAAP and SEC, are required by GAAP and SEC, may include information that is not reported in the financial statements

a high ratio of the gross profit percentage tells you

more is available to cover operating expenses

cash flow from operating activities

net income +/- adjustments for noncash items

the quality of financial reporting for publicly traded companies is improved through

obtaining an external audit, evaluating and reporting on the effectiveness of internal controls

the notes on financlia statements

possible legal obligations, purchase commitments

SEC's Fair Disclosure

requires publicly traded companies to provide access to all important company news

the notes to the financial statements typically provide detail support of

revenues by geo. region, makeup of property plant and equipment, business segments

Nonoperating Items

revenues, expenses, gains, losses that do not relate to the company's primary operations

EDGAR is

sponsored by the SEC and provides free, quick access to public companies' SEC filings

earnings per share appear on

the income sheet

comprehensive income may be shown on

the income statement

The notes in the annual report, should be reviewed to determine

the significant accounting rules used

Corporate Governance

the system of governing a company so that the interests of corporate owners and other stakeholders are protected

the CEO and CFO must personally certify about the financial reports files with the SEC

there are no significant internal control weaknesses, they do not contain any untrue material statements or omit material facts, they are presented fairly in all material aspects

the stock market typically reacts more to

unexpected earnings

private investors include

venture capitalists


Conjuntos de estudio relacionados

CompTIA CySA+ (CS0-003) Practice Exam #3

View Set

Microbiology Lecture and Lab Midterm Review

View Set

PSYC 301 Lecture Chapter 1 and 2

View Set

Chapter 23 Digestive System Video 1

View Set

فيزياء(الفصل الثاني )

View Set