Accounts

Revenue Expenditure – Is spending which tends to reoccurring or regular in nature and which affects/decreases the business's profit.
Debt Ratio – Total Liabilities / Total Assets
Accounting job categories? – Managerial
financial
Tax related
Accounting Related
Current ratio – Liquidity ratio that measures companies ability to pay short term obligations
Business Entity – Keeping personal and business records separate.
T account – An accounting device used to analyze transactions.
service revenue – sales of services for cash or on credit
salaries payable – current liabilities
Office Equip. – Asset / Balance sheet
A maximum legally permissible price for a good is called a __________.
Finished goods – These are completed manufactured items that a company has produced for sale to customers.
Net Loss – When expenses exceed revenue
*Chapter 6: Cash Journals* – …
Contra asset – Asset which is linked with another account
A company's business plan
a. is developed by the company's owner before the company is started, and guides the company throughout its life, with relatively little change over time
b. is only needed by "startup" companies
c. can help the company's owner borrow money for the company
d. is developed by the company's accountant, since it only contains financial information – c. can help the company's owner borrow money for the company
proprietorship – A business with a single owner.
A mаximum legаlly permissible price fоr а gооd is called a __________.
average inventory cost flow method – the method of inventory costing that is based upon the assumption that costs should be charged against revenue by using the weighted average unit cost of the items sold
Accrual adjustment – adjustment of an asset or liability for which the business records an expense or revenue before the cash comes in. Ex: interest receivable.
Amortization – Process of allocating the cost of an intangible asset to expense over its estimated useful life
Price-earning ratio – The relationship between the market value per share and earnings per share of a stock
balance sheet – shows what the company has (assets), what they owe (liabilities), and ownership… AS OF A SPECIFIC DATE, shows cumulative amounts from the first day the business started operations to the current date, shows how the company finances operations (from owners or from borrowing), and how the funds are invested in business (inventory, property, etc.)

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