Accounting Chapter 10 Vocabulary

Gross margin ratio – (Sales-COGS)/Sales
expand – расширяться, увеличиваться в объёме, в размерах, в количестве
Compensensation for skilled or unskilled labor is called: – Wage
Stockholder – The holder or person owning stock in a corporation is the
Accrued revenues – Revenues that have been earned but not yet received, ex. Consulting service already performed but hasn't billed customer yet
cost accounting – determining the cost of producing specific products or provide services and analyzing the cost
common stock – -shows the amount of the owners' investment in a corporation
-increases owners' equity
-increases assets (cash)
-when owners invest assets in a business, they receive shares of common stock in return
Independent Contractor – any person who agrees to perform a service for a fee and who is not subject to the control of those for whom the service is performed
Faithful representation – Agreement between a measure and the phenomenon it purports to represent.
Periodicity Assumption – Although the lifetime of a business is uncertain, it is nonetheless useful to estimate the business's net income in terms of accounting periods.
Officers hire the directors and other executive employees.
Cost – assets are recorded at purchase price
blank endorsement – the handwritten signature of the payee on the back of the check
Adjusting Journal entries – accrued liablility
accrued revenue
prepaid expense
unearned revenue
Cash payments journal – All cash outflows including cash purchases
68. Which financial accounting number impacts stock prices more than any other single piece of information?
A. Retained earnings.
B. Net income.
C. Common stock.
D. Total assets. – B. Net income.
Identify each item with its appropriate financial statement: Income Statement (IS), Statement of retained earnings (SRE), Balance Sheet (BS), Statement of Cash Flows (SCF)
*3 items appear on 2 financial statements, and 1 item shows up on 3 statements.

a. Dividends
b. Salary Expense
c. Inventory
d. Sales revenue
e. Retained Earnings
f. Net cash provided by operating activities
g. Net income
h. Cash
i. Net cash used for financing activities
j. Accounts Payable
k. Common Stock
l. Interest Revenue
m. Long-Term debt
n. Increase or decrease in cash – a. SCF, SRE
b. IS
c. BS
d. IS
e. BS, SRE
f. SCF
g. SCF, IS, SRE
h. BS, SCF
i. SCF
j. BS
k. BS
l, IS
m. BS
n. SCF

Officers hire the directоrs аnd оther executive emplоyees.
Proprietorship – Capital or Net Worth
debit – Received cash for services performed: ______ cash
credit – An amount recorded on the right side of a T account.
what is allowance method? – estimate a bad debt expense for revenue
mixed cost – a cost that contains both variable and fixed cost elements

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply