Accounting Chapter 4 Vocabulary

"Working Capital Turnover" Classify, Calculate, and Interpret – Activity Ratio

Working Capital Turnover = [ Revenue / Average Working Capital ]

AKA: "NET" working capital = Current assets – Current Liabilities. Utilization of working capital in terms of dollars of sales per dollar of working capital.

withdrawals – subdivision of of owner's equity that records money or other assets an owner withdraws from a business for personal use never for company purpose
Net income – Revenue – Expense
What can be Classified as Inventory – items held for sale; items in process of production or sale; goods used in the production of goods to be sold (raw material goods)
Postdated check – Check with a future date on it
straight-line method of depreciation – charging an equal amount of depreciation expense for a plant asset in each year
Tangible assets – those assets that can be appraised by value or seen or touched.
The visceral pericardium ______.
REVENUE expenditures – do not provide benefits to future periods (CURRENT)
*expenses when incurred
interest earned and collected is always recorded to the interest account and is never included in the notes receivable. – notes receivable includes only the principle amount that is loaned to others
The viscerаl pericаrdium ______.
Memorandum – a form on which a brief message is written describing a transaction

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