Accounting: Chapter 6 Vocab

free cash flow – net cash provided by operating activities after adjusting for capital expenditures and cash dividends paid
integrity – characteristic of honesty, including being forthright in dealing and communicating with others
transaction – A business activity that changes assets, liabilities, or owner's equity
The amount of income from the sale of funeral services would be shown on which formal financial statement? – Profit and Loss Statement
tickler file – A file that contains a folder for each day of the month; invoices are placed in the folders according to their due dates.
Balance Sheet – 1. Where funds (money) came from to operate the business.
2. Items the company has and uses to operate business
specific identification method – actual physical-flow costing method in which particular items sold and items still in inventory are specifically costed to arrive at cost of goods sold and ending inventory
F.U.T.A. – Federal Unemployment Tax Act.
A hot, dry summer will reduce crop yields in part because
Change in fair market value at 6/30 for investment income (could cause a negative interest income amount) – DR Interest income
CR Investment income
Salary – The money paid for employee services
A hоt, dry summer will reduce crоp yields in pаrt becаuse
Dr. – The abbreviation for "debit" is
Which of the following is a true statement about inventory systems? – B. Perpetual inventory systems require more detailed inventory records
Equity – the net worth of the business.
Contra Account – An account with a normal balance that is opposite that of a related account.

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