Principals Of Accounting Chapter 10 Vocabulary

restrictive endorsement – An endorsement restricting further transfer of a check's ownership
purchase order – a written order by a buyer for merchandise or other property specified in the purchase requisition
Bookkeeping – Recording function of the accounting process
ICLICKER receiving assets from customers before service are performed in – Unearned revenue
LIFO Liquidation – When inventory levels valued at older proces are sold and those older prices flow through COGS; can distort reported income (unrealistically low COGS and high net income)
revenue – an increase in equity resulting from the sale of goods or services
What must be done if a transaction increases the left side of the accounting equation? – The right side must be increased
From the lecture on Isaiah 61 we learned that not anointing oneself with oil in the ancient world was a little like not _______.
double-entry accounting – the recording of debit and credit parts of a transaction
Bank Statement – A document that outlines all your transactions with the bank on a particular account.
Uses of Income Statement – Risk, Operating Capability, Financial Flexibility
Account – a record summarizing all the information pertaining to a single item in the accounting equation
the fraud triangle – -pressure
-rationalization
-opportunity
High-low method – a method of separating a mixed cost into its fixed and variable elements by analyzing the change in cost between the high and low activity level (p39)
Frоm the lecture оn Isаiаh 61 we leаrned that nоt anointing oneself with oil in the ancient world was a little like not _______.
GAAP – Generally accepted accounting principles. The standard and rules that accounts follow while recording and reporting financial activities
Assets – -items owned by the business which have value
profit – the amount of money earned over and above the amount spent to keep the business operateing.

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