Accounting Terms Chapter 912

NET SALES REVENUE – SALES REVENUE LESS SALES DISCOUNTS AND SALES RETURNS AND ALLOWANCES
Under a perpetual inventory system, which of the following is not part of the journal entries made when merchandise is sold on credit?
A. credit the Cost of Goods Sold account.
B. credit the Sales Revenue account.
C. credit the Inventory account.
D. debit the Accounts Receivable account. – A
work sheet: a columnar accounting form used to summarize the general ledger information needed to prepare financial statements – work sheet: a columnar accounting form used to summarize the general ledger information needed to prepare financial statements
physical inventory – An actual count of merchandise to determine the exact quantity on hand is referred to as a(n) .
activity dictionary – a list of activities described by specific attributes
such as name, definition, classification as primary or secondary,
and activity driver.
What type of liability would a lawsuit be? – Contingent Liability
What programs are used to investigate a receivable on your AR list? Explain what these programs do. – • AA0090- Detail summary by contract
o 1 branch, 1 source #, 1 ticket
• AA0110- Customer # summary of all outstanding invoices by group
o 1 source #, whole group, all tickets
• AA0111- Customer # summary of all outstanding invoices by branch
o 1 branch, 1 source #, all tickets
Full Disclosure principle – Companies must disclose all situations and events that would influence the decisions that financial statement users would make. If an important item cannot be recorded in the financial statements themselves, it should be discussed in "Notes" that accompany the statements
Lessor – Party to a lease who grants another party (the lessee) the right to possess and use its property
Conservatism – companies must reduce the value of land, if the value is lower than its original cost.
_____________________ are designed to remove both juvenile and adult offenders from the normal channels of the criminal justice process by placing them in programs designed for rehabilitation.
Historical cost – When the actual amount paid for merchandise or other items bought is recorded
Cash method – only time we will make an entry is when cash is involved
ex: small business
How is owner's equity affected when cash is received from sales? – Increased
Restrictive Endorsement – restricts further transfer ownership
cash discounts – A deduction from the invoice price granted to induce early payment of the amount due.
internal users – directly involved and manages the organization
_____________________ аre designed tо remоve bоth juvenile аnd аdult offenders from the normal channels of the criminal justice process by placing them in programs designed for rehabilitation.
Full discloser – Companies must provide accounting information of sufficient importance to influence
Piece-Rate Basis – A method of paying employees according to the number of units produced.

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