Accounts

Acid test ratio (quick ratio) – quick assets divided by current liabilities.
Debt Inv. – Held to Maturity – Balance sheet – cost (adjusted for premiums and discounts)
Income statement – interest income, realized gains and losses
Expense – ~ Outflow of value
~ Asset down or liabilities up
~ Equity decreases as profit falls
– Not because of more drawings
Internal Users – owners, managers, and employees
Balance sheet – reports financial position at a particular point in time
income statement – an accounting statement that details the performance of a firm for a certain period of time
Capital – Account used to summarize the owner's equity in a business
business transaction – An economic event or condition that directly changes an entity's financial condition or directly affects its results of operations.
Current liabilities – debts of the business that must be paid within the next accounting period.
net realizable value – represents the amount of receivables a company estimates it will actually collect
SECTION 11: Answering questions–question 4 Remember: answer the question by writing just one complete sentence. Special letters, should you need them:   á   é   í   ó   ú   ñ ¿Qué quieres hacer mañana?
Customers – companies or people that directly purchase a company's product
accounting equation – the basic tool of accounting. Measuring the resources of the business and the claims to those resources . Assets=Liabilties + Equity
SECTION 11: Answering questiоns–questiоn 4 Remember: аnswer the questiоn by writing just one complete sentence. Speciаl letters, should you need them:   á   é   í   ó   ú   ñ ¿Qué quieres hаcer mañana?
partnership – has two or more owners
The weighted-average process-costing method calculates the equivalent units by:
a. considering only the work done during the current period
b. the units started during the current period minus the units in ending inventory
c. the units started during the current period plus the units in ending inventory
d. the equivalent units completed during the current period plus the equivalent units in ending inventory – d. the equivalent units completed during the current period plus the equivalent units in ending inventory
Assets recorded – Adjusted Trial Balance,
order of Liquidity
*objectivity concept* – A concept of accounting that requires accounting records and the data reported in financial statements to be based on objective evidence.

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