Accounting Chapter 4

Return on Equity – (Net Income)/(Beg. Total Shareholders' Equity)
Merchandising Business- – a business that purchases and sells goods.
Information and communication, in terms of the components of internal control… – Information and communication involves devleoping information systems to capture and commuinicate operation, financial, and compliance-related information necessary to run the business. pp 8-9
payroll – The total amount earned by all employees for a pay period
the fraud triangle – -pressure
Posting – Transferring information from a journal entry to a ledger account
Fica taxes – Taxes paid for by employee and employer
payee – a person or company who will receive payment on a promissory note, check, draft or money order
Both of the following if statements perform the same operation.
statement of operations – Another name for the income statement
Expense – The cost of goods or services used to operate a business.
Controller – chief accounting officer
interest expense – cost of money (borrowing) over time
What type of liability does accounts payable fall under? – Current Liabilities
Cash Equivalents – Are short-term investments with original maturities of three months or less that are readily convertible to cash and whose value is unlikely to change.
Bоth оf the fоllowing if stаtements perform the sаme operаtion.
stockholder – a person who owns stock in a corporation.

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