Intermediate Accounting Exam 1

associates tax expense or tax benefit with continuing operations and any item reported below continuing operations

involve the disposal or planned disposal of a component of an entity whose operations and cash flows can be clearly distinguished from the rest of the entity

material gains and losses that are both unusual in nature and infrequent in occurrence

the amount of income achieved during a period for each share of common stock outstanding

the total change in equity for a reporting period other than from transactions with owners

predictive value and/or feedback value; timeliness: available to users before a decision is made; is understandable by reasonably informed users of accounting information

Verifiability: consensus among different measurers; representational faithfulness: agreement between a measure and a real-world phenomenon; neutrality: accounting standards should be set with overall societal goals and specific objectives in mind, and should try not to favor particular groups or companies, and free from bias toward a predetermined result

ability to help users see similarities and differences among events and conditions (also implies consistency)

cost effectiveness: the perceived benefit of increased decision usefulness exceeds the anticipated costs of providing that information; materiality: has an effect on decisions

Probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events

Probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events

Called shareholders’ or stockholders’ equity for a corporation is the residual interest in the assets of an entity that remains after deducting its liabilities

Increases in equity of a particular business enterprise resulting from transfers to it from other entities of something of value to obtain or increase ownership interests in it

Decreases in equity of a particular enterprise resulting from transfers to owners  

inflows or other enhancements of assets of an entity or settlements of its liabilities during a period from delivering or producing goods, rendering services, or other activites that constitute the entity’s ongoing major or central operations