Miscellaneous Flashcards
Consist of a statement of ifnancial condition and astatemtn of changes in net worth–may be prepared for an individual, husband and wife, or family
Personal financial statements
An element of personal financial statements that presents the estimated current values of assets, estimated current amounts of liabilities, estimated income taxes, and net worth at aspecified date
Statement of financial condition
An element of personal financial statements that presetns main sources of increases/decreases in net worth over the time period included
Statement of changes in net worth
An approach to interm reporting in which each interim period ids a separate accounting period taht stands on its own–uses the same principles and procedures as for annual reports; no special accruals or deferrals
Discrete view
An approach to iterm reporting in which each interim period is an integral part of an annual period; expectations for annual period must be reflected in the interim reports by making special accruals, deferalls, and allocations
Integral view–the one used in interim reporting
The disclosure fo information about different components of an enterprise’s operations as well as information related to the enterprise’s products and services, its geographic areas, and its major customers
Segment reporting
Approach used in segment reporting that is ased on the way management organizes segments interanlly to make operating decisiosn and assess performance
Management approach
A component of an enterprise engaged in business activity for which it may earn revenues and incur expenses, about which separate financial information is available that is evaluated regularly by the chief operating decision makers in deciding how to allocate resources and in assessing performance
Operating segment
Most segments are considered this, and therefore internal transfer prices among segments generally reflect market prices
Profit centers
Occurs whenever this is a change in ownership of a partnership (i.e. addition of a new partner or retirenemnt/ death of an existing partner)
Partnership dissolution
The winding up of partnership affairs and termination of hte business
Partnership liquidation
A document that shows in detail all o the transactiosn associated iwth the liquidation of ht partnership
Statemetn of partnership liquidation
A liquidation in which all assets are sold in bulk and all of the creditors’ claism are satisfied before a signle liquidating distribution os made tohte partners–greater change that p-ship will realize a greater loss than under installment method b/c sold in bulk, so more use installment method
Simple liquidation
A liquidation in which the assets are sold over a period fo time and the cash is disbriuted othte partners as it becomes available
Installment liquidation
A method of accounting for partner aquiisition in which the old partnership capital plus the new partner’s asset contribution is equal to the new partnership capital
Bonus method
