Accounting Unit 2

deudas u obligaciones a pagar – payables
A favorable fixed overhead flexible-budget variance indicates that actual fixed costs exceeded the lump-sum amount budgeted. – False
Expense – decrease in assets or an increase in liabilities resulting from operating activities undertaken to generate revenue
Generally Accepted Accounting Principles – A set of rules and practices, having substantial authoritative support, that the accounting profession recognizes as a general guide for financial reporting purposes (SEC, FASB, IASB, PCAOB)
Auditors – Individuals hired to review financial reports and information systems
Liquidity Ratios – "current"
receivables turnover ratio
average collection period
inventory turnover ratio
average days in inventory
current ratio
acid-test ratio
T account – a skeleton form of an account used for instructional purposes
Wall Company incurred $30,000 of fixed cost and $40,000 of variable cost when 2,000 units of product were made and sold.  If the company's volume increases to 2,500 units, the cost per unit will be 
Return on Common Equity (ROCE) (ROSE) – (net income – preferred Stock dividends) / Average Common Shareholder's equity
time – the number of years or fractional portion of a year that the principal is outstanding
consolidated account – skonsolidowany rachunek
Wаll Cоmpаny incurred $30,000 оf fixed cоst аnd $40,000 of variable cost when 2,000 units of product were made and sold.  If the company's volume increases to 2,500 units, the cost per unit will be 
geologist – One who studies the matter that makes up the Earth.
Assets = Liabilities + Owners Equity is the: – Basic Accounting Equation

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