Accounting Chapter One Vocab

Истощимые активы – Wasting assets
Equity – the total financial claims to the assets, or property, of a business.
Common stock – Term used to describe the total amount paid in by stockholders for the shares they purchase.
quebrantos impositivos – tax loss carry forwards
Periodic Inventory system – cost of goods sold is determined at the end of the fiscal period
Fiscal year – An accounting year ending on some date other than December 31st is called
What is the formula to calculate the accounts receivable turnovers ratio, and what does the formula measure? – Net sales divided by average net accounts receivable.
Cost-volume-profit analysis assumes all of the following EXCEPT:
a. all costs are variable or fixed
b. units manufactured equal units sold
c. total variable costs remain the same over the relevant range
d. total fixed costs remain the same over the relevant range – c. total variable costs remain the same over the relevant range
TEST!! Net revenue – Sales revenue – Sales allowances – sales discounts
Why is depreciation necessary – The cost of long-term asset must be matched to the time period in which the asset is used to generate revenue.
__________ is the term for the principal amount that the issuer is obligated to repay at maturity.
12. Transactions of a company involving external sources of funding are referred to as:
A. Investing activities.
B. Financing activities.
C. External activities.
D. Operating activities. – B. Financing activities.
appraisal costs – cost incurred to determine whether products and
services are conforming to requirements
operating activities – involve receiving cash from revenue and paying cash for expenses
__________ is the term fоr the principаl аmоunt thаt the issuer is оbligated to repay at maturity.
Person whom money is owed – Creditor

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