Ch 4 Completing The Accounting Cycle

Bond vs. Stock Issuance – 1.) No ownership offered to bondholders
2.) Tax-deductible interest expense
3.) Structured payment schedule
production report – a document that summarizes the manufacturing
activity that takes place in a process department for a given
period of time.
reliability – information faithfully represents the underlying economics – validity, verifiability, and unbiasedness
Supplies – All personal property excluding equipment, intangible property, debt instruments, and inventions of a contractor conceived or first actually reduced to practice in the
performance of work under a funding agreement.
Vertical analysis – a method of comparing a company's account balances within one year by dividing each account balance by a base amount to yield a percentage
financial calculations – kaufmännisches Rechnen
tax accounting – vergi muhasebesi
Fill in the  blanks: A z-score is the number of __________ a data point is above or below the __________.
Accounting equation – Equality involving a company's assets, liabilities, and equity; Assests = Liabilities + Equity; also called a balance sheet equation.
liquidity ratios – measures of the short-term ability of the company to pay its maturing obligations and meet unexpected needs for cash
Revenues received that we do not bill for (permits/fees) – DR Cash
CR Permit/Fee revenue
Earnings per Share – (net income – dividends on preferred stock)/ average shares of common stock outstanding
Internal audits – employed by the company, examine the accounting system.
Characteristics of reliability include – representational faithfulness
Fill in the ¬†blаnks: A z-scоre is the number оf __________ а dаta pоint is above or below the __________.
Fixed Asset – Land, Buildings, Equipment
The difference between total sale and sales returns and allowances is – Net sales
Notes receivable are generally interest-bearing and for longer periods of time than accounts receivable. Notes receivable are also evidenced by a written document. What is this statement referring to? – The difference between accounts receivable and notes receivable

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