WGU D196 GLOSSARY| STUDY GUIDE
Absolute Cell Reference
A cell reference that remains constant when a formula is pasted into a new cell. (Unit 3)
Account
An accounting record in which the results of transactions are accumulated; shows
increases, decreases, and a balance.
Accounting
A system for providing quantitative, financial information about economic entities that is
useful for making sound economic decisions. Accounting provides the means of
recording and communicating business activities and the results of those activities.
Accounting Cycle
The procedure for analyzing, recording, summarizing, and reporting the transactions of
a business.
Accounting Equation
An algebraic equation that expresses the relationship between assets (resources),
liabilities (obligations), and owner's equity (net assets, or the residual interest in a
business after all liabilities have been met): Assets = Liabilities + Owners' Equity. (Unit
3)
Accounting System
The procedures and processes used by a business to analyze transactions, handle
routine bookkeeping tasks, and structure information so it can be used to evaluate the
performance and health of the business.
Activity-based Costing (ABC)
A method of attributing overhead costs to products based on measurable factors that
relate to activities that create overhead costs. (Unit 7)
Actual Manufacturing Overhead
Manufacturing costs other than direct materials and direct labor. (Unit 6)
,American Institute of Certified Public Accountants (AICPA)
A professional organization for CPAs in which membership is voluntary.
Annual Report
A document that summarizes the results of operations and financial status of a
company for the past year and outlines future plans.
Applied Manufacturing Overhead
The amount of the manufacturing overhead that is assigned to the goods produced.
This is usually done by using a predetermined annual overhead rate. (Unit 6)
Arm's-length Transaction
A transaction in which a buyer and seller act independently to get the best possible
deal. (Unit 2)
Articulation
The interrelationships among the financial statements.
Assets
Economic resources that are owned or controlled by a company.
Balance Sheet
A summary of the financial position of a company at a particular date.
Batch-level Activities
Activities that take place in order to support a batch or production run, regardless of the
size of the batch. (Unit 7)
Book Value
The value of a company measured by the amount of owner's equity in the company.
(Unit 3)
Break Even
To make just enough income to cover costs without any profit or loss.
Break-even Point
, The amount of sales at which total costs of the number of units sold equal total
revenues; the point at which there is no profit or loss.
Budget
A quantitative expression of a plan that shows how a firm or organization will acquire
and use resources over some specified period of time.
Business
An organization operated with the objective of making a profit from the sale of goods or
services.
Business Documents
Records of transactions used as the basis for recording accounting entries; include
invoices, check stubs, receipts, and similar business papers. (Unit 2)
Capital Budgeting
Systematic planning for long-term investments in operating assets. (Unit 6)
Capital Stock
The portion of stockholder's equity that represents investment by owners in exchange
for shares of stock; also referred to as paid-in capital. (Unit 3)
Cash Budget
A short-term schedule of expected cash inflows and outflows during a period of time.
(Unit 4)
Certified Public Accountant (CPA)
An accountant who has met specified professional requirements established by the
AICPA and local and state societies. A key service provided by CPAs is the
performance of independent audits of financial statements.
Classified Balance Sheet
A balance sheet that distinguishes between current and long-term assets.
Comparative Financial Statements
Financial statements that include information for both the current year and preceding
year(s) that are prepared for users to identify any significant changes in particular items.
Absolute Cell Reference
A cell reference that remains constant when a formula is pasted into a new cell. (Unit 3)
Account
An accounting record in which the results of transactions are accumulated; shows
increases, decreases, and a balance.
Accounting
A system for providing quantitative, financial information about economic entities that is
useful for making sound economic decisions. Accounting provides the means of
recording and communicating business activities and the results of those activities.
Accounting Cycle
The procedure for analyzing, recording, summarizing, and reporting the transactions of
a business.
Accounting Equation
An algebraic equation that expresses the relationship between assets (resources),
liabilities (obligations), and owner's equity (net assets, or the residual interest in a
business after all liabilities have been met): Assets = Liabilities + Owners' Equity. (Unit
3)
Accounting System
The procedures and processes used by a business to analyze transactions, handle
routine bookkeeping tasks, and structure information so it can be used to evaluate the
performance and health of the business.
Activity-based Costing (ABC)
A method of attributing overhead costs to products based on measurable factors that
relate to activities that create overhead costs. (Unit 7)
Actual Manufacturing Overhead
Manufacturing costs other than direct materials and direct labor. (Unit 6)
,American Institute of Certified Public Accountants (AICPA)
A professional organization for CPAs in which membership is voluntary.
Annual Report
A document that summarizes the results of operations and financial status of a
company for the past year and outlines future plans.
Applied Manufacturing Overhead
The amount of the manufacturing overhead that is assigned to the goods produced.
This is usually done by using a predetermined annual overhead rate. (Unit 6)
Arm's-length Transaction
A transaction in which a buyer and seller act independently to get the best possible
deal. (Unit 2)
Articulation
The interrelationships among the financial statements.
Assets
Economic resources that are owned or controlled by a company.
Balance Sheet
A summary of the financial position of a company at a particular date.
Batch-level Activities
Activities that take place in order to support a batch or production run, regardless of the
size of the batch. (Unit 7)
Book Value
The value of a company measured by the amount of owner's equity in the company.
(Unit 3)
Break Even
To make just enough income to cover costs without any profit or loss.
Break-even Point
, The amount of sales at which total costs of the number of units sold equal total
revenues; the point at which there is no profit or loss.
Budget
A quantitative expression of a plan that shows how a firm or organization will acquire
and use resources over some specified period of time.
Business
An organization operated with the objective of making a profit from the sale of goods or
services.
Business Documents
Records of transactions used as the basis for recording accounting entries; include
invoices, check stubs, receipts, and similar business papers. (Unit 2)
Capital Budgeting
Systematic planning for long-term investments in operating assets. (Unit 6)
Capital Stock
The portion of stockholder's equity that represents investment by owners in exchange
for shares of stock; also referred to as paid-in capital. (Unit 3)
Cash Budget
A short-term schedule of expected cash inflows and outflows during a period of time.
(Unit 4)
Certified Public Accountant (CPA)
An accountant who has met specified professional requirements established by the
AICPA and local and state societies. A key service provided by CPAs is the
performance of independent audits of financial statements.
Classified Balance Sheet
A balance sheet that distinguishes between current and long-term assets.
Comparative Financial Statements
Financial statements that include information for both the current year and preceding
year(s) that are prepared for users to identify any significant changes in particular items.
