Accounting Chapter 9 Vocabulary

profit – The difference between the amounts received from customers for goods or services provided and the amounts paid for the inputs used to provide the goods or services.
processing – recognizing the effects of transaction on the asset, liabilities, o/e, revenue, and expenses of a business
The concept of keeping a firm's financial records separate from the owner's personal financial records. – separate entity assumption
invoice – a source of document showing quantity, description, prices of items, total amount of purchase and the terms of payment
**ON EXAM**
An account is a part of the financial information system and is described by all EXCEPT which one of the following? – B. An account is a source document
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An account has a debit and credit side
An account may be part of a manual or a computerized accounting system
An account has a title
What is capital stock that has been assigned a value per share in corporate charter called? – Par value
Entry – information for each transaction
What is the benefit of trade for Germany and France? 
external transactions – transactions the firm conduct with a separate economic entity.
Client Fees – An increase to which of the accounts will increase owner's equity?
t account – a skeleton verson of a stadard account used for demonstrating purposes
Whаt is the benefit оf trаde fоr Germаny and France? 
Deferred Revenue – Cash received for services that will be performed later
Freight Out – The transportation cost to ship goods out of the seller's warehouse; therefore, it is freight goods sold to a customer.
What is an asset? – An asset is a possession that can be evaluated and assessed in monetary terms. Assets are goods that are worth money. An asset a/can be sold for money or can be used to generate an income.
Manufacturing costs – product costs (include DM, DL, MOH)
Proprietorship – A business with a single owner.

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