Accounting Unit 1

The financial statement that represents activity over the entire life of the company – Balance sheet
What is the Monetary unit assumption? – An assumption that requires that only those things that can be expressed in money are included in the accounting records.
units-of-production depreciation – accomplishes this goal by basing depreciation expense on actual asset usage
EBIT Margin Ratio(Relative measure) – EBIT/Sales
Sales Journal – A special journal used to record only sales of merchandise.
Financial statement that report the assets, liabilities, and stockholders' (owner's) equity at a specific date is the – Balance sheet
The criminal couldn't *account for* his time on the afternoon of the crime. – A bűnöző nem tudott elszámolni az idejével a bűntény délutánján.
The rule of ________ holds that the chance of two (or more) independent events occurring together is the product of their chances occurring separately 
merchandise – Goods that a business purchases to sell.
Financial Accounting Standards Boards (FASB) – Independent group of full time members responsible for setting accounting rules.
petty cash slip – a form showing proof of a petty cash payment
Weighted-average unit cost – average cost that is weighted by the # of units purchased at each unit cost
corporation – special legal form for a business in which the business is a legal entity separate from the owners. A corporation may have a single owner or many
Net Loss – EXPENSES Greater than REVENUE = NET LOSS
accounting equity – Financial affairs of the business must be separate from the personal affairs owner. e.g house, mortgage, car, furniture, personal bank account, computer- All Personal Affairs
The rule оf ________ hоlds thаt the chаnce оf two (or more) independent events occurring together is the product of their chаnces occurring separately 
Accounting is a system for providing financial information. List 2 principle elements – -Financial Accounting
-Managerial Accounting
What are two reasons a corporation would want to issue stock dividends? – Satisfy stockholders and increase marketability

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