Accounting Chapter 1 Vocabulary

global brand with the biggest value – Coca-Cola
Purposes of Internal Control – To safeguard assets.
To ensure accurate and reliable account record.
To encourage adherence to company policies.
NOT to promote operational ineffeciency
Equity Financing – Financing by issuing stock.
capital – the account used to summarize the owner's equity in an business
Enterprise Value – Equity + debt -Cash
Financial Statement – 1.Income statement
2.Statement of Owner's Equity (Sole Prop & Partnership)
-corporation retained Earnings statement
3.Balance Sheet
Forecasting claim amounts and medical coverage costs are business opportunities for insurance industry in using data mining.  
Asset – anything of value that is owned
profit margin – árrés, marzs
Stockholders' Equity (Owners' Equity) – Indicates the amount of financing provided by owners of the business and earnings. Is the sum of the contribute capital + the retained earnings.
selling expenses – expenses that are incurred directly in the selling of merchandise.
Subsidiary Ledger – the sub-classification of a particular account
Stock Dividends/ Stock Split – Instead of paying dividends in cash, companies will pay issue additional amounts of stock
Fоrecаsting clаim аmоunts and medical cоverage costs are business opportunities for insurance industry in using data mining.  
electronic funds transfer – a computerized cash payments system that transfers funds without the use of checks currency or other paper documents
what are expenses used by – salaries
rent
insurance
cost of inventory
inventory – items held only for sale to the customer
productos terminados y productos en proceso – finished goods and working process
FOB Shipping point – Freight Costs paid by Buyer
Buyer assumes ownership of inventory when it leaves seller's place of business
Buyer has risk of loss
Cost of shipping is included in Merchandise Inventory

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