The Financial Statements quiz #7 Flashcards
The Financial Statements quiz #7
You can tap to flip the card.
Control buttons has been changed to "navigation" mode.
1/40Skip to main content
What is the meaning of 'return on investment (ROI)'?
'Return on investment (ROI)' measures the gain or loss generated on an investment relative to its cost. What is the meaning of 'capital structure'?
'Capital structure' is the mix of debt and equity used to finance a company's operations. What is the meaning of 'leverage' in financial statements?
'Leverage' refers to the use of borrowed funds to increase the potential return on investment. What is the meaning of 'off-balance-sheet financing'?
'Off-balance-sheet financing' refers to financial obligations not recorded on the balance sheet. What is the meaning of 'contingent asset'?
'Contingent asset' is a potential asset that may arise from future events. What is the meaning of 'provision' in financial statements?
'Provision' is an amount set aside to cover a probable future liability or loss. What is the meaning of 'impairment' in accounting?
'Impairment' is a permanent reduction in the value of an asset below its carrying amount. What is the meaning of 'write-off' in accounting?
'Write-off' is the removal of an uncollectible account or asset from the books. What is the meaning of 'write-down' in accounting?
'Write-down' is the reduction of the carrying value of an asset to its fair value. What is the meaning of 'restructuring charges'?
'Restructuring charges' are expenses related to reorganizing a company's operations. What is the meaning of 'extraordinary items'?
'Extraordinary items' are gains or losses from events that are both unusual and infrequent. What is the meaning of 'discontinued operations'?
'Discontinued operations' are components of a business that have been disposed of or are held for sale. What is the meaning of 'change in accounting principle'?
'Change in accounting principle' is a switch from one generally accepted accounting method to another. What is the meaning of 'prior period adjustment'?
'Prior period adjustment' is a correction of an error in previously issued financial statements. What is the meaning of 'earnings management'?
'Earnings management' is the manipulation of financial statements to achieve desired results. What is the meaning of 'window dressing' in financial statements?
'Window dressing' is the practice of making financial statements appear more attractive than they actually are. What is the meaning of 'creative accounting'?
'Creative accounting' is the use of accounting techniques to present financial results in a misleading way. What is the meaning of 'fraudulent financial reporting'?
'Fraudulent financial reporting' is the intentional misstatement or omission of financial information to deceive users. What is the meaning of 'Sarbanes-Oxley Act (SOX)'?
'Sarbanes-Oxley Act (SOX)' is a U.S. law that sets requirements for financial reporting and internal controls. What is the meaning of 'internal controls'?
'Internal controls' are processes designed to ensure the reliability of financial reporting and compliance with laws. What is the meaning of 'audit committee'?
'Audit committee' is a group of board members responsible for overseeing financial reporting and audits. What is the meaning of 'independent auditor'?
'Independent auditor' is an external accountant who examines financial statements for accuracy and compliance. What is the meaning of 'material weakness' in internal controls?
'Material weakness' is a deficiency in internal controls that could lead to a material misstatement in financial statements. What is the meaning of 'significant deficiency' in internal controls?
'Significant deficiency' is a less severe internal control issue than a material weakness but still important enough to merit attention. What is the meaning of 'management letter' from auditors?
'Management letter' is a report from auditors to management highlighting internal control issues and recommendations. What is the meaning of 'unqualified audit opinion'?
'Unqualified audit opinion' is an auditor's statement that financial statements are presented fairly in all material respects. What is the meaning of 'qualified audit opinion'?
'Qualified audit opinion' is an auditor's statement that financial statements are fairly presented except for certain issues. What is the meaning of 'adverse audit opinion'?
'Adverse audit opinion' is an auditor's statement that financial statements are not fairly presented. What is the meaning of 'disclaimer of opinion'?
'Disclaimer of opinion' is an auditor's statement that no opinion can be given on the financial statements. What is the meaning of 'subsequent event' in auditing?
'Subsequent event' is an event occurring after the balance sheet date but before the financial statements are issued or available to be issued. What is the meaning of 'going concern uncertainty'?
'Going concern uncertainty' is doubt about a company's ability to continue operating in the foreseeable future. What is the meaning of 'emphasis of matter paragraph' in an audit report?
'Emphasis of matter paragraph' is an auditor's note highlighting an important issue in the financial statements. What is the meaning of 'related party disclosure'?
'Related party disclosure' is the requirement to disclose transactions with related parties in the financial statements. What is the meaning of 'segment disclosure'?
'Segment disclosure' is the requirement to report financial information for different business segments. What is the meaning of 'earnings per share (EPS) disclosure'?
'Earnings per share (EPS) disclosure' is the requirement to report basic and diluted EPS on the income statement. What is the meaning of 'interim financial reporting'?
'Interim financial reporting' is the preparation of financial statements for periods shorter than a full fiscal year. What is the meaning of 'comparative financial reporting'?
'Comparative financial reporting' is the presentation of financial data for multiple periods to facilitate comparison. What is the meaning of 'restatement' in financial reporting?
'Restatement' is the revision of previously issued financial statements to correct errors or reflect changes in accounting policies. What is the meaning of 'pro forma adjustments'?
'Pro forma adjustments' are hypothetical changes made to financial statements to show the effects of potential transactions. What is the meaning of 'management's responsibility for financial statements'?
'Management's responsibility for financial statements' is the obligation of management to ensure the accuracy and completeness of financial reports.
06:00
