What categories can current assets be sub classified into? – 1. Inventories – goods held available for sale
2. Receivables – amounts owed to the company, perhaps as a result of selling goods on credit. This includes prepayments.
3. Investments – Shares held in the short term with the intention of reselling
4. Cash
A financial even that changes the resources of a firm. – Business Transaction
Current Assets – Assets whose future economic benefit will be consumed within one accounting period, e.g. inventory, bank, accounts receivable.
over the counter receipts – jcp
Predetermined overhead rate – a rate used to charge manufacturing overhead cost to jobs that is established in advance for each period. it is computed by dividing the estimated total manufacturing overhead cost for the period by the estimated total amount of the allocation base fo the period.
What is "receivables turnover?" Classify, Calculate, and Interpret. – Activity Ratio

Receivables Turnover = [Annual Sales / Average Receivables]

It is considered desirable to have a "receivables turnover" figure close to the INDUSTRY norm

proving the ledger – adding all debit balances and all the credit balances of ledger accounts, and then comparing the two totals to see whether they are equal
Cash Budget – A projection of anticipated cash plows, usually over a one to two year period.
Full disclosure – Any event which effects financial position must be told to share holders
The water in a gyre moves ______________ in the northern hemisphere.
business transactions – economic events that affect a business's financial position
9. The following comments were heard in Cornell Hall the other day. Which comment probably describes the least creative person?
1. John comes up with such "off the wall" ideas!
2. When I asked why we have to use pencils on all his exams, he said it's because that's the way it's always been done.
3. Don't get him started – Jacob has more ideas about how we should do that than the rest of us combined.
4. Janet always has to figure out how everything works. – 2. When I asked why we have to use pencils on all his exams, he said it's because that's the way it's always been done.
butcher – one who slaughters animals, cuts them up, and sells the meat.
If we want to plan a holiday to England, we must *take into account* that there are many rainy months. – Ha nyaralást akarunk szervezni Angliába, számításba kell venni, hogy sok esős hónap van.
accounting – the information system that identifies, records, and communicates the economic events of an organizations to interested users
Working Capital – Current assets – Current liability
The wаter in а gyre mоves ______________ in the nоrthern hemisphere.
long-term liabilities – one of the common groups on the classified balance sheet

expected to be paid in more than one year

Accounting cycle – The series of accounting activities including in recording financial information for a fiscal period
Operating Income – Gross Profit – Total Operating Expenses

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