| Additional Paid-In Capital (Paid-In Capital, Contributed Capital in Excess of Par) | The amount of contributed capital less the par value of the stock.
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| Board of Directors | Elected by the shareholders to represent their interests; is responsible for maintaining the integrity of the company's financial reports.
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| Comparable Information | Information that can be compared across businesses because similar accounting methods have been applied.
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| Conservatism | Suggests that care should be taken not to overstate assets and revenues or understate liabilities and expenses.
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| Consistent Information | Information that can be compared over time because similar accounting methods have been applied.
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| Corporate Governance | The procedures designed to ensure that the company is managed in the interests of the shareholders.
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| Cost-Benefit Constraint | Suggests that the benefits of accounting for and reporting of information should outweigh the costs.
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| Cumulative Effects of Changes in Accounting Methods | Amounts reflected on the income statement for adjustments made to balance sheet accounts when applying different accounting principles.
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| Discontinued Operations | Financial results from the disposal of a major component of the business and are reported net of income tax effects.
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| Earnings Forecasts | Predictions of earnings for future accounting periods.
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| Extraordinary Items | Gains and losses that are both unusual in nature and infrequent in occurrence; they are reported net of tax on the income statement.
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| Form 8-K | The report used by publicly traded companies to disclose any material event not previously reported that is important to investors.
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| Form 10-K | The annual report that publicly traded companies must file with the SEC.
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| Form 10-Q | The quarterly report that publicly traded companies must file with the SEC.
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| Gross Profit (Gross Margin) | Net sales less cost of goods sold.
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| Income before Income Taxes (Pretax Earnings) | Revenues minus all expenses except income tax expense.
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| Income from Operations (Operating Income) | Equals net sales less cost of goods sold and other operating expenses.
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| Institutional Investors | Managers of pension, mutual, endowment, and other funds that invest on the behalf of others.
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| Lenders (Creditors) | Suppliers and financial institutions that lend money to companies.
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| Material Amounts | Amounts that are large enough to influence a user's decision.
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| Par Value | (1) A legal amount per share of stock established by the board of directors; it establishes the minimum amount a stockholder must contribute and has no relationship to the market price of the stock. (2) Also, another name for bond principal or the maturity amount of a bond.
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| Press Release | A written public news announcement normally distributed to major news services.
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| Private Investors | Individuals who purchase shares in companies.
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| Relevant Information | Information that can influence a decision; it is timely and has predictive and/or feedback value.
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| Reliable Information | Information that is accurate, unbiased, and verifiable.
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| Unqualified (Clean) Audit Opinion | Auditors' statement that the financial statements are fair presentations in all material respects in conformity with GAAP.
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