Key Terms Accounting Standards Codification (ASC). The single source for all US GAAP. Accrual.

Recognition precedes cash receipt/expenditure. Accrual basis. xpenses are recogni!ed as related re"enues are recogni!ed. Cash basis. Recogni!es inco#e $hen cash is recei"ed and expenses $hen cash is disbursed. Current cost. The a#ount of cash% or its e&ui"alent% that $ould be paid if the sa#e asset $ere to be ac&uired currentl'. Current #ar(et "alue. The a#ount of cash% or its e&ui"alent% that could be obtained b' selling as asset in orderl' li&uidation. )eferral. Cash receipt/expenditure precedes accrual*basis recognition. +air "alue. The price that $ould be recei"ed to sell an asset or paid to transfer a liabilit' in an orderl' transaction bet$een #ar(et participants at the #easure#ent date under current #ar(et conditions. ,istorical cost. The a#ount of cash% or its e&ui"alent% paid to ac&uire an asset. -nstall#ent sales. Re"enue is recogni!ed as cash is collected. .et reali!able "alue. The nondiscounted a#ount of cash% or its e&ui"alent% into $hich an asset is expected to be con"erted during the nor#al course of business less direct costs to #a(e the con"ersion. Period costs. Costs not particularl' or con"enientl' assignable to a product. Present "alue. The current #easure of an esti#ated future cash inflo$ or outflo$% discounted at an interest rate for the nu#ber of period bet$een toda' and the date of the esti#ated cash outflo$. Product costs. Costs $hich can be associated $ith particular sales. Reali!ed (reali!able). /hen related assets recei"ed or held are readil' con"ertible into (no$n a#ounts of cash or clai#s to cash. Ris( ad"erse. 0ar(et place participants prefer situations $ith less uncertaint' relati"e to an expected outco#e. Start*up costs. The costs incurred during the course of underta(ing on*ti#e acti"ities related to opening a ne$ facilit'.