Accounting Terms Chapter 912

Statement of Account. – A report sent to each customer, usually at the end of the month, which indicates the status of their account.
Solvency – The ability of a company to pay interest as it comes due and to repay the balance of debt at its maturity.
Statement of Owner's Equity/Statement of Net Worth. – A formal financial statement which summarizes all of the changes in owner's equity during a specified period of time.
SFAC1 – Third Objective in Conceptual Framework – Objective 3: Information Useful in Assessing Company Cash Flows
wage – a form of compensation usually for skilled and unskilled labor, expressed in terms of hours, weeks or pieces completed
Purchase allowance – a deduction made to the selling price of merchandise, granted by the seller so that the buyer will keep the merchandise
electronic funds transfer – a computerized cash payments system that tranfers funds without the use of checks, currency, or other paper documents
debit – The left side of an account.
Employee Income Tax – Employers must pay the taxes withheld from employees' gross pay to the appropriate government agency
Fill in the blanks with the preterite form of the verbs. Mariela __________ (querer) estudiar el fin de semana, pero fue imposible.
Dividends – Distribution to stockholders
Money Measure – The concept that all business transactions are recorded in terms of money.
stockholder's equity – ownership interest in the business
Acquisition/Payment Process – acquiring Capital, Property/Plant/Equipment, Raw materials, Labor, Inventory, Goods & Services
37. Which of the following accounts appears in the statement of stockholders' equity?
A. Supplies.
B. Cash.
C. Salaries Payable.
D. Retained Earnings. – D. Retained Earnings.
Fill in the blаnks with the preterite fоrm оf the verbs. Mаrielа __________ (querer) estudiar el fin de semana, perо fue imposible.
Inventory turnover tells you – The number of times inventory turns per on average in a year. The efficiency of inventory management policies/purchasing decisions being made that provide the right amount of inventory in the right place at the right time
final processing/reporting – the process of communicating the results achieved during an accounting period to others
Under the accrual basis of accounting, expenses are reported in the accounting period when the – Expenses matches the revenues or is used up
journalizing – the process of recording business transactions in a journal

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