Accounting Unit 2

audit – an official inspection of an individual's or organization's accounts, typically by an independent body
Special Endorsement – An endorsement indicating a new owner of a check.
Partnership – A business in which two or more people combine their assets and skills
current ratio – measures short-term debt-paying ability
Business Transactions – A financial event that changes the resources of a firm.
SALES DISCOUNT – REDUCTION IN THE AMOUNT OF CASH RECEIVED FROM A CUSTOMER FOR EARLY PAYMENT. OFFERED BY THE SELLER AS AN INCENTIVE FOR THE PURCHASERS TO PAY EARLY.

A CONTRA ACCOUNT TO SALES REVENUE.

income statement – A financial statement showing the revenue and expenses for a fiscal period
N.S.F. – The abbreviation for not sufficient funds.
Assets listed on a company's balance sheet are
1. resources that the company has on hand on the date of the balance sheet that are available to use after that date
2. resources that the company used up during the last year
3. stated at their current market value
4. resources that the company purchased during the year that ended on the balance sheet date. – 1. resources that the company has on hand on the date of the balance sheet that are available to use after that date
Natural Resources OR Intangible Assets – …Is a Debit balance account.
Name and describe one historical event that made a significant impact in computing.  Use complete sentences for this question.
list price – The retail price listed in a catalog or on an Internet site
itemised account – spezifizierte Rechnung
When Should a Company Record Inventory – when it obtains legal title to the good; must consider goods in transit, special arrangements, sales returns
time ticket – a document that is used to record the aount of time an emplotee spends on various activities.
cash disbursements – pay by check
an accounts payable occurs when… – the company buys inventory or supplies and the company does not pay for it when received. the seller sends an invoice (bill) to the company and gives the company 30 days to pay it
Nаme аnd describe оne histоricаl event that made a significant impact in cоmputing.  Use complete sentences for this question.
Expense, Income Statement – Type and Statement for: Depreciation Expense
earnings per share – (net income – preferred dividends) / weighted average of common shares outstanding
bond – a financial instrument in which a borrower promises to pay future interest and principal to a creditor in exchange fo the creditor's cash today
TRUE – To determine the cost of goods sold under a periodic inventory system, the following steps are necessary:
1.Determine the cost of goods on hand at the beginning of the accounting period.
2. Add to it the cost of goods purchased.
3. Subtract the cost of goods on hand at the end of the accounting period.
FOB destination – situation in which the buyer takes ownership (title) at the delivery destination point and the seller pays the freight

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