Accounting 1: Chapter 1 Century 21 9e

manager – one who directs and controls a business, a hotel, etc.
Comparability – Enables users of accounting information to identify and explain similarities and differences between two or more sets of economic facts
To Improve ROA… – 1.improve your profit margin 2.improve asset turnover **Use ratio analysis to figure out which one an entity may be focused on
#38. The acid-test ratio at December 31, 2002, rounded to the nearest tenth, is equal to: – Cash + Account Receivable in parenthesis divided by inventory
Efficiency Variance – SR(AH-SH)
Accounting Cycle Step 6 – Accounting Cycle: Step to record adjusting entries. Use the worksheet to journalize and post adjusting entries. The adjusting entries are a permanent record of the changes in account balances shown on the worksheet.
Balance Sheet – A financial statement that reports assets, liabilities, and owners equity on a specific date.
Preferred Stock – stock with no voting rights, purchased by investors to earn dividend income at the stated interest rate.
Debt Ratio= – Total Liabilities divided by total assets
Income – An increase in proprietorship as the result of a business transaction is an
A group home for juvenile offenders is _________.
Average Collection Period Ratio – 365/receivables turnover *shows how often collected
Common-sized income statement – each account is expressed as a percentage of the value of sales
liabilities (debts) – claims against the assets of the business by non owners (creditors)
Merchandisers – who generally has a longer business cycle
Proving the Journal. – A process which examines each page of a journal, confirming that the debit entries equal the credit entries on each page.
Accounts payable 300
Merchandise Inventory 300 – Journal Entry: The buyer returns inventory costing $300 how does the buyer recorde this
A grоup hоme fоr juvenile offenders is _________.
The amount of cash the company paid for equipment this year – Cash flows from investing activities
cash flow – cash coming in and cash going out of a business
sole proprietorship – single owner; keep all profits, total control, unlimited liability (responsible for damages)
A journal designed for entering only purchases of merchandise on account is called a/an: – Purchases Journal
income statement – revenue minus expenses for a given time period

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