Exame CPA e Contabilidade

Cards · 59

Accrual Accounting

Revenue is recognized when earned and expenses when incurred, regardless of cash receipt or payment.

Cash Basis Accounting

Revenue and expenses are recognized only when physical cash is received or disbursed.

Matching Principle

Requires expenses to be matched with the revenues they helped generate in the same period.

Revenue Recognition Principle (ASC 606)

A 5-step model recognizing revenue when control of promised goods or services transfers to customers.

Going Concern Assumption

The presumption that an entity will continue operating indefinitely unless liquidation is imminent.

Materiality

Information is material if omitting or misstating it could influence users' economic decisions.

Conservatism Principle

When in doubt, choose the accounting treatment least likely to overstate assets and income.

Balance Sheet

A financial snapshot showing assets, liabilities, and equity at a specific point in time.

Income Statement

Reports financial performance via revenues, expenses, gains, and losses over a reporting period.

Statement of Cash Flows

Tracks cash inflows and outflows across operating, investing, and financing activities.

Other Comprehensive Income (OCI)

Revenues, expenses, gains, and losses excluded from net income, such as unrealized AFS gains.

Allowance for Credit Losses (CECL)

Estimates expected lifetime credit losses on financial assets measured at amortized cost.

FIFO (First-In, First-Out)

Assumes oldest inventory items are sold first; produces higher net income during inflation.

LIFO (Last-In, First-Out)

Assumes newest inventory items are sold first; allowed under US GAAP but prohibited under IFRS.

Lower of Cost or Net Realizable Value

Inventory measurement rule applied under US GAAP when using FIFO or average cost methods.

Depreciation

Systematic allocation of the cost of a tangible fixed asset over its estimated useful life.

Amortization

The systematic expensing of the acquisition cost of an intangible asset over its useful life.

Goodwill Impairment Test

Assessed at least annually by comparing a reporting unit fair value against its carrying amount.

Operating Lease (Lessee)

Recognizes a Right-of-Use asset and lease liability on the balance sheet with single lease expense.

Finance Lease (Lessee)

Lease meeting specific criteria where lessee recognizes interest expense and asset amortization separately.

Contingent Liability

Accrued when a future loss is both probable and reasonably estimable; disclosed if reasonably possible.

Subsequent Events (Type 1)

Conditions existing at or before the balance sheet date requiring financial statement adjustment.

Subsequent Events (Type 2)

Conditions arising after the balance sheet date that require disclosure only, not adjustment.

Deferred Tax Asset (DTA)

Future tax benefit arising from deductible temporary differences; evaluated for a valuation allowance.

Deferred Tax Liability (DTL)

Future tax liability resulting from taxable temporary differences between book and tax rules.

Valuation Allowance

Contra-asset reducing a DTA if it is more likely than not (over 50%) that benefits will not be realized.

Basic Earnings Per Share (EPS)

Net income minus preferred dividends divided by weighted average common shares outstanding.

Diluted Earnings Per Share

EPS calculated assuming all convertible securities, options, and warrants are exercised.

Treasury Stock

A corporation's own issued stock that has been bought back; reported as a contra-equity account.

Audit Risk Model

Audit Risk equals Inherent Risk multiplied by Control Risk multiplied by Detection Risk (AR = IR x CR x DR).

Inherent Risk

Susceptibility of an assertion to material misstatement assuming no related internal controls exist.

Control Risk

Risk that internal controls will fail to prevent or detect a material misstatement on a timely basis.

Detection Risk

Risk that audit procedures will not detect a material misstatement; directly controlled by the auditor.

Risk of Material Misstatement (RMM)

The combined assessment of Inherent Risk and Control Risk outside the auditor's direct control.

Unmodified / Unqualified Opinion

Auditor concludes financial statements are presented fairly in all material respects per GAAP.

Qualified Opinion

Issued when statements have a material but not pervasive misstatement or scope limitation.

Adverse Opinion

Issued when financial statements are materially and pervasively misstated, not following GAAP.

Disclaimer of Opinion

Issued when an auditor lacks independence or cannot obtain sufficient evidence due to pervasive limits.

Emphasis-of-Matter Paragraph

Audit report paragraph highlighting an appropriately presented matter fundamental to user understanding.

Substantive Testing

Audit procedures designed to detect material misstatements at the assertion level, including tests of details.

Test of Controls

Audit procedures performed to evaluate the operating effectiveness of internal controls in preventing errors.

COSO Internal Control Framework

Identifies five integrated components: Control Environment, Risk Assessment, Control Activities, Info/Comm, Monitoring.

Independence in Fact and Appearance

AICPA rule requiring an auditor to remain unbiased and avoid relationships compromising objectivity.

Compilation Engagement

Assisting management in presenting financial statements without obtaining or providing any assurance.

Review Engagement

Provides limited assurance via analytical procedures and inquiries without testing internal controls.

Ordinary Income vs Capital Gains

Ordinary income is taxed at standard rates; long-term capital gains generally enjoy preferential lower rates.

Wash Sale Rule

Disallows tax loss deductions if substantially identical securities are repurchased within 30 days before or after.

Section 179 Deduction

Allows businesses to deduct the full purchase price of qualifying equipment and software in the purchase year.

MACRS Depreciation

Modified Accelerated Cost Recovery System used for US tax purposes; ignores salvage value.

Like-Kind Exchange (Section 1031)

Allows deferral of capital gains tax on the exchange of real property held for business or investment.

C Corporation Tax Structure

Separate taxable legal entity subject to corporate income tax, leading to potential double taxation on dividends.

S Corporation

Pass-through entity avoiding double taxation, limited to 100 eligible shareholders and one class of stock.

Partnership Basis

A partner's investment adjusted for profits, losses, distributions, and allocation of partnership liabilities.

Net Operating Loss (NOL)

Tax loss under current US rules carried forward indefinitely, generally limited to 80 percent of taxable income.

Governmental Funds

Account for core public services using modified accrual accounting and current financial resources focus.

Proprietary Funds

Account for business-type activities in government using full accrual accounting and economic resources focus.

Fiduciary Funds

Account for assets held by a government in trust or agency capacity for external parties; uses full accrual.

Modified Accrual Accounting

Recognizes revenue when measurable and available; expenditures are recorded when liability is incurred.

Encumbrance

Commitment recorded in governmental accounting to reserve budgetary appropriations for future expenditures.