Accounting Final Exam Review

correspondent – one who regularly reports local news or writes special articles to a newspaper
ROA – net income/avg. total assets
Notes receivable – Formal credit arrangements evidenced by a written debt instrument or note
constancia de alta temprana – early registration certificate
Sale on account – Sale for which cash will be recieved at a later date
First-in, first-out (FIFO) – an inventory costing method that assumes that the earliest goods purchased are the first to be sold.
Annual Straight-line Depreciation – (Acquisition cost – salvage value) / Estimated useful life
Mike gets angry because Ben made a better grade on a test than he did. They get into an argument, and Mike takes a swing at Ben intending to hit him. Ben shoves Mike in order to avoid the blow. Which of the following is true regarding Ben's actions?
Unit of measure – Same measuring units to determine financial progress
Net income/Net sales – Profit Margin
Dishonored check – Check that bank refuses to pay
Amortization – Process of allocating the cost of an intangible asset to expense over its estimated useful life
Mike gets аngry becаuse Ben mаde a better grade оn a test than he did. They get intо an argument, and Mike takes a swing at Ben intending tо hit him. Ben shoves Mike in order to avoid the blow. Which of the following is true regarding Ben's actions?
account payable – The liability created by a purchase on account.
Merchandise – Goods that a business purchases to sell
10th step of Accounting Cycle – prepare post-closing trial balance
Profitability and Performance Measures – Profit Margin
Gross Profit Margin
COGS as Percentage of Sales
Net Income as Percentage of Sales
Interest Coverage Ratio (Times Interest Earned Ratio)
Fixed Charge Coverage Ratio
Earnings Per Share (Basic and Diluted)
Price-Earnings Ratio
Return on Equity
Return on Capital (Investment)
Return on Assets
*Indicating how much company keeps of every dollar it makes; important to investors
Long term assets – Not used up in a year.

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