Accounting Chapter 10 Vocabulary

Asset | Expense – Prepaid Rent Expense | Rent Expense
Prepaid Insurance Expense | Insurance Expense
Prepaid Advertising Expense | Advertising Expense
Supplies | Supplies Expense
Allowance for Uncollectible Accounts | Bad Debt Expense
Inventory | Cost of Goods Sold
PPE | Depreciation Expense*
Intangible Assets | Amortization Expense*
* Coss – Residual value / by the estimated years of use = the annual expense
International Financial Reporting Standards (IFRS) – Accounting guidelines, formulated by the International Accounting Standards Board (IASB). By 2015, U.S. GAAP is expected to be harmonized with IFRS. At that time, U.S. companies are expected to adobpt these principles for their financial statements, so that they can be compared with those of companies from other countries.
Operating cycle – The average time that it takes to purchase inventory, sell it on account, and then collect cash from customers.
computerized accounting system – a type of accounting
Other expenses and losse – A nonoperating-activities section of the income statement that shows expenses and losses unrelated to the company's main line of operations.
Quick Ratio – Quick Assets (cash, marketable securities, accounts receivable) /
Current Liabilities
Disclaimer Opinion – Auditor could not obtain enough information to determine if the statements follow GAAP so no opinion is expressed
Partnership – An association of two or more persons to carry on as co-owners of a business of profit.
Refer to Figure 4-1. If the market price is $2.00, what is the consumer surplus on the second burrito?
Price Earning Ratio – relationship between price and profit. : formula (stock market price/eps)
cash register – آلة تسجيل النقود
Terminal Summary – The report that summarizes the cash and credit card sales of a point-of-sale terminal.
Statement of cash flows – summarizes cash inflows and outflows or a period of time
8 – What step in the accounting process is Closing entries (record, jounilize, and post)?
Common Stock – A denomination of ownership.

A claim of a companies future assets and earnings

Refer tо Figure 4-1. If the mаrket price is $2.00, whаt is the cоnsumer surplus оn the second burrito?
Net accounts receivable is reported on the balance sheet – net of the allowance for estimated uncollectible amounts

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