Match each term with its definition. ✓ Management discussion and analysis ✓ Extraordinary items ✓ 10-K reports ✓Matching principle Economic income Accounting income Treasury stock Synthetic leases ✓ Goodwill ✓ Accrual basis of accounting ✓ Cash flow adequacy ratio Pro forma financial statements Earnings management ✓ Derivative ✓ Debt covenants A. includes both recurring and nonrecurring components. B. The statement. C. D. E.A F. G. The is a financial instrument whose value is derived from the value of another asset, class of assets, or economic variable. provides information concerned with a company's business plan or strategy. requires that cash inflows are recognized when they are received, and cash outflows are recognized when they are paid. can be used to evaluate the reasonableness and feasibility of short-term cash forecasts. 1. The measures a company's ability to generate sufficient cash flows from operations to cover capital expenditures, inventory additions, and cash dividends. H. K. L. M. N. requires that revenues earned and expenses incurred in generating those revenues should be reported in the same income O attempts to influence accounting income for some purpose such as income smoothing. are recorded net of tax in income statement. consists of permanent component, transitory component, and value irrelevant component. is a company's own stock that it has repurchased. are contact terms mandated by the creditor to protect against possible loan default. may provide benefits of window-dressing the balance sheet and increasing cash flow to the borrower. is the excess of the purchase price of net assets over the fair value of net assets. are annual filings made by a company with SEC.
Match each term with its definition. ✓ Management discussion and analysis ✓ Extraordinary items ✓ 10-K reports ✓Matching principle Economic income Accounting income Treasury stock Synthetic leases ✓ Goodwill ✓ Accrual basis of accounting ✓ Cash flow adequacy ratio Pro forma financial statements Earnings management ✓ Derivative ✓ Debt covenants A. includes both recurring and nonrecurring components. B. The statement. C. D. E.A F. G. The is a financial instrument whose value is derived from the value of another asset, class of assets, or economic variable. provides information concerned with a company's business plan or strategy. requires that cash inflows are recognized when they are received, and cash outflows are recognized when they are paid. can be used to evaluate the reasonableness and feasibility of short-term cash forecasts. 1. The measures a company's ability to generate sufficient cash flows from operations to cover capital expenditures, inventory additions, and cash dividends. H. K. L. M. N. requires that revenues earned and expenses incurred in generating those revenues should be reported in the same income O attempts to influence accounting income for some purpose such as income smoothing. are recorded net of tax in income statement. consists of permanent component, transitory component, and value irrelevant component. is a company's own stock that it has repurchased. are contact terms mandated by the creditor to protect against possible loan default. may provide benefits of window-dressing the balance sheet and increasing cash flow to the borrower. is the excess of the purchase price of net assets over the fair value of net assets. are annual filings made by a company with SEC.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA1: International Financial Reporting Standards
Section: Chapter Questions
Problem 7MCQ
Related questions
Question
Match each term with it's definition.
Transcribed Image Text:Match each term with its definition.
I
X
Management discussion and
analysis
✓ Extraordinary items
10-K reports
V
Matching principle
✓ Economic income
✓ Accounting income
Treasury stock
Synthetic leases
✓ Goodwill
✓ Accrual basis of accounting
V
Cash flow adequacy ratio
Pro forma financial statements
Earnings management
✓ Derivative
Debt covenants
A.
B. The
C.
PASTINY
statement.
E.A
G. The
J.
includes both recurring and nonrecurring components.
is a financial instrument whose value is derived from the value of another asset, class of assets, or economic variable.
provides information concerned with a company's business plan or strategy.
requires that cash inflows are recognized when they are received, and cash outflows are recognized when they are paid.
can be used to evaluate the reasonableness and feasibility of short-term cash forecasts.
1. The
measures a company's ability to generate sufficient cash flows from operations to cover capital expenditures, inventory additions,
and cash dividends.
L.
M.
requires that revenues earned and expenses incurred in generating those revenues should be reported in the same income
attempts to influence accounting income for some purpose such as income smoothing.
are recorded net of tax in income statement.
consists of permanent component, transitory component, and value irrelevant component.
is a company's own stock that it has repurchased.
are contact terms mandated by the creditor to protect against possible loan default.
may provide benefits of window-dressing the balance sheet and increasing cash flow to the borrower.
is the excess of the purchase price of net assets over the fair value of net assets.
are annual filings made by a company with SEC.
1.57
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