Accounting Chapter 4 Vocab

service business – operates to provide a needed service for a fee.
What is a Owner's equity? – The residual interest in the assets of the entity after the liabilities are deducted.
schedule of accounts payable – a listing of vendor accounts, account balances, and total amount due all vendors
Double declining balance & Sum of the years digits – methods of depreciation that allow the business to recover the cost early in the life of the asset include
Financing Activities – Long-term Liabilities, Stockholder's equity
Liabilities – Something owed to another business entity (creditors claims on assets
XBRL Extensible Business Reporting Language – technology that enables firms to report info ina standardized way that makes the data immediately reusable and interactive
Direct Labor (DL) – Labor cost that can be physically traced to product (variable costs)
Secured bond – Backed by collateral
An entry made on the debit side of an asset account indicates that the account has been – Increased
Much traditional drama from India depends on
IASB – International Accounting and Standard Boards
contra asset acount – has a credit balance instead of the debit balance normally seen in asset accounts
A liability must have ALL THREE of the following characteristics to be reported on the balance sheet – 1) require probable use of a future economic benefit (asset)

2) be owed

3) result from a past transaction

book value – the difference between the cost of a depreciable asset and its related accumulated depreciation
Much trаditiоnаl drаma frоm India depends оn
Post closing trial balance – Lists all accounts balance. Double checks we didn't miss anything when closing
Solvency – Companies ability to pay long term liabilities
Net income – the difference between total revenue and total expenses when total revenue is greater
Retained earnings – An equity: Sum of all profits earned by the business not distributed to investors as dividends.

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