Financial Accounting Ch 1 Dj

Straight Line Depreciation – Method that allocates an equal portion of the depreciable cost of plant asset (cost minus salvage) to each accounting period in its useful life.
Business ethics – The use of ethics in making business decisions
Financial Accounting – Info to investigators or creditors by financial statements of historical info & financial position
income statement – A financial statement that presents the revenues and expenses and resulting net income or net loss of a company for a specific period of time.
postdated check – A check with a future date on it
Net loss – the amount by which expenses exceed revenues
Investing Activities – Activities concerned with the acquisition and disposition of long-term assets.
Financial statements – The principle means through which a company communicates its financial information to those outside it.
purchase discount – A cash discount on purchases taken by a customer.
The Hubble Space Telescope obtains higher-resolution images than most ground-based telescopes because it is
reasons for treasury stock – 1. reissue share to employees as compensation
2. reduce the number of outstanding shares to increase earnings per share
3. confidence in the company
4. considered issued, not outstanding
balance sheet common-size statements/percentage method – express the major items in the balance sheet as a percent of the total assets and compare with previous fiscal periods
Closing Entries – The transferal of the balances of the temporary accounts to the capital account
The Hubble Spаce Telescоpe оbtаins higher-resоlution imаges than most ground-based telescopes because it is
statement of retained earnings – ending retained earnings = beginning retained earnings + net income – dividends

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