9A Key Terms Flashcards
Accounting Standards Codification (ASC)
Single source for all US GAAP
Accrual
Recognition precedes cash receipt/expenditure
Accrual basis
Recognize revenues as earned, recognize expenses as incurred
And match expenses to revenues for those expenses that help to
Earn those revenues
Current market value
Amount of cash, or its equivalent, that could be obtained by Selling as asset in orderly liquidation
Deferral
Cash receipt/expenditure precedes accrual basis recognition
Fair value
Price that would be received to sell an asset or paid to transfer A liability in an orderly transaction
Between market participants at the measurement date underCurrent market conditions
Historical cost
Amount of cash or its equivalent paid to acquire an asset
Installment sales
Revenue is recognized as cash is collected
Net realizable value
Nondiscounted amount of cash, or its equivalent, into which an Asset is expected to be converted
During normal course of business less direct costs to make Conversion
Period costs
Costs not particularly or conveniently assignable to product
Present value
Current measure of estimated future cash inflow or outflow, Discounted at an interest rate for the number of periods
between Today and date of estimated cash outflow
Product costs
Costs which can be associated with particular sales
Realized (realizable)
When related assets received or held are readily convertible into Known amounts of cash or claims to cash
