AC216 Unit 7 Vocabulary Trianna Hampton Across Down 2. Uses a variety of exchange 1. An enhancing quality of rates to convert assets and accounting such that information liabilities of a foreign affiliate to is clear and concise to those with the reporting currency; reasonable business knowledge adjustment may impact 9. An enhancing quality of operating income. accounting such that different 3. The financial statements of knowledgeable and independent prior periods are redone to observers reach similar reflect the correct amounts conclusions 4. An accounting assumption 14. Prior Period that presumes the currency is To correct not impacted over time by errors from prior years; prior inflation financial statements are 5. Uses prevailing exchange retroactively changed to make rates to convert assets and them correct liabilities of a foreign affiliate to 16. unit the reporting currency; assumption. Accounting measures adjustment may impact other transactions and events in units of comprehensive income. money, in contrast to some other 6. Operations. unit of measure (e.g., acres of The special income statement land) reporting of the impact of disposing or abandoning of a component of a business 7. Net income plus items of other comprehensive income (e.g., market value adjustments of available for sale securities) 8. An enhancing quality of accounting such that deviations in outcomes from period to period should be the result of deviations in underlying performance (not accounting quirks) 10. An enhancing quality of accounting such that information is available in sufficient time to be capable of influence 11._ Assumption. In the absence of evidence to the contrary, accountants 13 assume that a business will continue to operate well into the future 12. An enhancing quality ofAC216 Unit 7 Vocabulary Trianna Hampton is available in sufficient time to be capable of influence Down 11. Assumption. 1. An enhancing quality of In the absence of evidence to accounting such that information the contrary, accountants is clear and concise to those with assume that a business will reasonable business knowledge continue to operate well into the 9. An enhancing quality of future accounting such that different 12. An enhancing quality of knowledgeable and independent accounting such that even observers reach similar though different companies may conclusions use different accounting 14. Prior Period methods, there is still sufficient To correct basis for valid comparison errors from prior years; prior 13. Changes from one financial statements are acceptable method of accounting retroactively changed to make to another acceptable method; them correct like straight-line depreciation to 16. unit a declining balance approach assumption. Accounting measures 14. Entity transactions and events in units of money, in contrast to some other Accounting information should be unit of measure (e.g., acres of presented for circumscribed land) distinct economic units 15. A fundamental quality of accounting such that information should be timely and bear on the decision-making process by possessing predictive or confirmatory (feedback) value 17. Common stockholders' equity divided by common shares outstanding, to indicate stockholders equity per share 18. representation. A fundamental quality of accounting such that information must be truthful; complete, neutral, and free from error 19. Abbreviation for regulatory body with which public companies must file and report 20. Abbreviation for the specific 13 accounting rules developed by the International Accounting Standards Board