Accounting Chapter 4 Vocab

horizontal analysis – amount of item on current financial statement compared w/ same item on other statement
Under the LCM approach market value is defined as
A. FIFO cost.
B. LIFO cost.
C. current replacement cost.
D. selling price. – C
A temporary owner's equity account in which the revenue earned from the sales of merchandise is entered would be: – Purchases
operating activities – activities that create revenue or expense in the statement of cash flows. These activities affect the income statement.
Expense recognition principle – Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses
Ledger – Group of accounts. Records data from business transactions
Monetary unit assumption – In the US, the dollar is the "measuring stick" used in financial reporting, without consideration of changes in purchasing power
Source documents – the original document showing that a transaction has occurred. Bill of sale, cheque, invoice, receipt, sales order
economic entity assumption – an assumption that every economic entity can be separately identified and accounted for
balance sheet – list of business's assets, liabilities, and stock holders equity as a specific date
In organic chemistry, compounds are generally classified by
A company must make at least two changes in assets, liabilities, or owner's equity when it records each transaction – Dual Effect of Transactions
cash-flow statement – pénzforgalmi jelentés
Cost management involves long-term and short-term decisions that attempt to increase value for customers and lower costs of products or services. – True
Notes Receivable – amounts owed to a company; the company loaned money to another party and expects to be repaid over a period of time. Interest is charged
The cost to the company of the goods that it sold during the year – Expenses
revenue recognition principle – under the accrual basis of accounting, you record revenue when it has been earned.
In оrgаnic chemistry, cоmpоunds аre generаlly classified by
balance sheet – the statement that shows the financial position of a company as of certain date
financial statements – financial reports that summarize the financial condition and operations of a business
par value – value per share that is assigned in the corporation charter
Equity, Retained Earnings – Type and Statement for: Retained Earnings, Beginning Balance

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