Accounting Terms Chapter 912

transaction – A business activity that changes assets, liabilities, or owner's equity
Suppliers/ Creditors – -They are interested in information that enables them to determine whether amounts owing to them will be paid when due and whether they should continue supplying goods to them on credit.
-Income Statement- see if the business is generating enough income and making a profit to find out if they are able to repay the creditors.
-Statement of Financial Position- see if the business has enough assets that could be used as a security to loan/ or what they owe.
Blank Endorsement – Consists merely of the signature of the endorser on the back of the check
Earnings per share – each shareholders share of profits. : formula (net income/ # of shares) needs to be high
Does the issuing of stock dividends result in a decrease of paid in capital? – No
Age of Accounts Receivable. – Measures the average time required to collect receivables. CALCULATION: 360 days divided by Accounts Receivable Turnover.
Logan Company received $300 from a customer as a payment for a credit sale made in a previous accounting period. Logan will record this as – $300 reduction in accounts receivable
A "T account" . . . – represents a ledger account
Double entry accounting – recording of debit and credit parts of a transaction
The valence shell electron pair repulsion theory (VSEPR) is used to
intangible assets – *patents
Profit – The income that succeeds exspeses
Owes – liabilities are all things a funeral director
The vаlence shell electrоn pаir repulsiоn theоry (VSEPR) is used to
historical cost principle – assets are recorded and reported at original purchase price
Акционерный капитал к оплате – Called-up share capital
source document – A business paper from which information is obtained for a journal entry
the exchange of stock for land would be reportend on the statement of cash flows under – non cash investing and financing activities

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