WGU C213 Word Scramble

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Question	Answer
Reliable	Information that can be verified
Relevant	Information having to do with the matter at hand
Material	Information that is important enough to make a difference
Conservatism	Information related to recognizing losses as they occur
Order the steps in the decision cycle from first (1) to last (5).	Prepare financial statements Analyze financial statements Gather information Make decision Implement decision
Comprehensive income	The number used to reflect an overall measure of the change in a company’s wealth during the period
Net Income	A measure of a company's performance that is intended to summarize in one number the overall economic performance of a company in a given period is
Income from Continuing Operations	A measure of a company's performance that includes all items that are expected to continue into the future i
extraordinary items	Gains and losses that result from transactions that are both unusual in nature and infrequent in occurrence
Comprehensive income	reflects the overall change in a company’s wealth during a period and includes items that, in general, arise from changes in market conditions unrelated to the business operations of a company.
Revenue recognition	a cornerstone of accrual accounting together with matching principle. They both determine the accounting period, in which revenues and expenses are recognized.
Revenue recognition	A very good way to view ___________is that a company should report revenue in its income statement only after value has been delivered to its customers
Expanded Accounting Equation	Analysis of revenue and expense transactions requires the use of the
New Zealand	Thus far, the only national government to adopt the accrual basis for its official accounting system is ______
Statement of Cash Flows Categories are	Operating activities Investing activities Financing activities
Operating Activities	Cash Receipts: Sale of goods , services, trading securities, interest revenue, and dividend revenue. Cash Payments: inventory purchases, Wages, Taxes, Interest expense, other expenses
Investing Activites	Cash Receipts: Sale of planet assets, business segment, nontrading securities, collection of princip. on loads. Cash Payments: Purchase of plant assets, nontrading securities, making loans to other entities
Cash equivalents	Short-term, highly liquid investments such as Treasury bills, commercial paper, and money market funds.
Which of the following is the typical sequencing of activities on the statement of cash flows?	Operating, investing, and financing
Financing Activities	Cash from: Issuances of stock, borrowing(mortgage, bonds, notes) Cash payments for: cash dividends, repayment of loads, repurchase of stock (treasury stock)
Significant noncash financing and investing transactions are	Reported in a narrative or in a separate schedule
indirect method	begins with net income as reported in the income statement and then details the adjustments needed to arrive at cash flow from operations
direct method	reporting the information contained in the last column of the adjustment worksheet
indirect method	95% of large U.S. corporations use the________ when reporting cash from operating activities.
What is a cost that will change in the future based upon the decision made?	Differential cost
Opportunity Costs	The benefits lost or forfeited as a result of selecting one alternative course of action over another.
Out-of-pocket Costs	Costs that require an outlay of cash or other resources.
Pro Forma	A prediction of what the actual cash flow statement will look like in future years if the operating, investing, and financing plans are implemented.
Sunk Costs	Costs that are past costs and do not change as a result of a future decision.
Cost Behavior	The way a cost is affected by changes in activity levels.
Cost Drivers	Numerical measure used to reflect the amount of a specific cost that is associated with a particular activity.
Cost Pool	Total cost being generated by a specific overhead cost activity.
Differential Costs	Future costs that change as a result of a decision; also called incremental or relevant costs.
Direct Costs	Costs that are specifically traceable to a unit of business or segment being analyzed.
Period Costs	Costs not directly related to a product, service, or asset. They are charged as expenses to the income statement in the period in which they are incurred.
Product Costs	Costs associated with products or services offered.
Activity-based Costing (ABC)	A method of attributing overhead costs to products based on measurable factors that relate to activities that create overhead costs.
Unit-level Activities	Activities that take place each time a unit of product is produced.
Product-line Activities	Activities that take place in order to support a product line, regardless of the number of batches or individual units produced.
Facility Support Activities	Activities necessary to have a facility in order to participate in the development and production of products or services; activities are not related to any particular line of products or services.
Batch-level Activities	Activities that take place in order to support a batch or production run, regardless of the size of the batch.
C-V-P analysis, while useful for several purposes, is primarily useful in	Planning
C-V-P analysis is useful to managers in	Controlling decisions Planning Evaluating decisions
Mixed costs	Costs that contain both variable and fixed costs components.
cost-volume-profit (C-V-P) analysis	Techniques for determining how changes in revenues, costs, and level of activity affect the profitability of an organization.

Created by: mschelle816