Weisinger Accounting Ch 5

assets and expenses – increase with a debit and decrease with a credit
merchandise purchases are: – expenses (debited) and have a negative effect on Owner's equity
Drawings – the withdraw of money for personal use of the owner
Current Ratio – current assets/current liabilities
Unit of measurement – Applied when business transactions are stated in numbers that have common values, that is, using a common unit of measurement
Expanded Accounting Equation – Assets=Liabilities+Capital-Withdrawals+Revenue-Expenses
calendar mouth – Kalendermonat
Bond Indenture – Stated/Contract/Coupon Rate
1.) Principle and interest payment dates (i.e., annual, semi-annual, etc.)
2.) Maturity date (i.e., 30 years)
3.) Bond Covenants (minimum capital or other ratio requirements)
4.) Callable/Convertible Features
5.) Does not indicate Market/Current/Effective Rates
Given the following equation, determine the rate of reaction with respect to [NOCl].                         NO(g) + Cl2(g)  →  NOCl(g)
Transactions that impact beginning balance of Owner's Equity – Owner invests more money in the business
Business makes a profit or loss
Owner takes assets out of the business
Asset, Balance Sheet, Debit, Permanent – Copy Rights
debit Income Summary, credit the Retained Earnings – Income Summary has a credit balance of $12,000 after closing revenues and expenses. The entry to close Income Summary is:
external controls – The measures and procedures provided outside the business to protect cash and other assets.
Product Costs – costs directly connected with bringing the goods to the buyers place of business and converting such goods to a saleable condition
Balance Sheet – contains assets, liabilities, and owner's equity
Given the fоllоwing equаtiоn, determine the rаte of reаction with respect to [NOCl].                         NO(g) + Cl2(g)  →  NOCl(g)
Break Even in Units – Fixed Costs / Cont. Margin per unit
Finite Lives of Intangible Assets – Amortization recorded (Intangible assets reduced directly)
purchase on account – A transaction in which the merchandise purchased is to be paid for later.
Marketable Securities – you get the money back quickly
footnotes – additional information provided after the financial statements

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