an increase in equity resulting from the sale of foods or services – revenue
Explain the Application of the Basic Principles of Accounting (1) – (1) Measurement principle: Existing GAAP permits the use of historical cost, fair value, and other valuation bases.

Although the historical cost principle (measurement based on acquisition price) continues to be an important basis for valuation, recording and reporting of fair value information is increasing.

Current Liabilities – Debits to be paid in one year or operating cycle.
Invoice – a paper showing quantity, description, prices of items, total amount of purchase, and terms of payment is a/an
Markup – The amount added to the cost of merchandise to establish the selling price.
receipt – A business form giving written acknowledgement for cash received
Current Ratio – (Current Assets / Current Liabilities)
Notes – A written promise to pay a specific amount at a specific future date that typically include an interest charge
Because S-waves do not travel through Earth's outer core, scientists inferred that the outer core is
accounting cycle – external transactions- record& post external transactions.
adjusting entries- record& post adjusting entries.
reporting process- prepare financial statements.
closing process- record & post closing entries.
purchase allowance – is a reduction in the cost of defective or unacceptable merchandise that a buyer acquires
long-term assets – evaluating alternative long-term investments by discounting future cash flows
determining the value the assets acquired under deferred payment contracts
measuring impairments of assets
Residual Income – Net Ops Income – Average ops Assets x minimum rate of return
S corporations – Corportions with special tax status
Becаuse S-wаves dо nоt trаvel thrоugh Earth's outer core, scientists inferred that the outer core is
Cash Basis – Revenue: only recognized on payday Expense: Only recognized when paid

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