materiality constraint – prescribes that only info that would influence the decision of a reasonable person need be disclosed
Purchases Journal – A special journal used to record the purchase of goods on credit.
Chart of accounts – Lists of accounts used by a company; included an identification number for each account. (p.76)
Monetory concept – All transactions are recorded in New Zealand dollars
Claims for future collection from customers – Accounts receivable
Consistency – closely related to comparability-applying the same policies and procedures year after year
Expense Recognition Principle – Recognition of expenses is related to net changes in assets and earning revenues. The expense recognition principle is implemented in accordance with the definition of expense by matching efforts (expenses) with accomplishment (revenues).
Creditors – A person or organization to whom a liability is owed.
fair market value (FMV) – used to determine respective costs to be assigned to each asset
weighted average – cost of available-for-sale units divided by number of units available
Revenue – Money earned by the business.
Retail sales tax – a tax imposed on tangible personal property sold at retail.
gemcutter – One who cuts, shapes and polishes gems.
Accounts Payable – Current Liability
Gross Profit – net sales- cost of goods sold