Accounting Chapter 9 Vocabulary

What type of liability does accounts payable fall under? – Current Liabilities
asset – a future economic benefit
When is revenue reported on the income statement? – Goods or services are provided to the customer.
Sales Return – Credit allowed to a customer for the sales price of returned merchandise, resulting in a decrease in the vendor's accounts receivable.
Receipts (originals)
Receipts (copies) – Proof that cash payment has been made (customer).
Proof that cash has been receive (business).
blank statement – A report of deposits, withdrawals, and bank balances sent to a depositor by a bank.
Stock and Capital – financing provided by owners; stock is reported at PAR VALUE; ie. $500 (5,000 shares x $.10 par)
free enterprise system – people are free to produce the goods and services they choose.
1. time period assumption
2. cost pinciple
3. monetary unit
4. entity
5.going concern – 1.annually , quarterly , monthly SEC REQUIREs this
2. remain at their original cost (referred
to as "historical cost"). recorded dollar amount paid or recieved(how much money from long term asset)
3.only transactions that have economic value are entered into the company's accounting records. current currency
4.only transactions of the company itself are recorded
for the company – that is, financial information of the company is reported separately from its owners.
5.is not in the process of liquidation and will continue to operate
indefinitely into the future
De vacaciones (part 1) Indicate the word that does NOT belong. el modo de transporte [1]  en el avión [2]  en el aeropuerto [3] 
Leverage Ratio – Assets/Owners' Equity
Special journal – A journal designed for recording a particular type of transaction is known as a/an
Callable Bond – May be called for early retirement at the option of the issuer.
Accounting Entity Concept – The Financial affairs of an entity must be kept separate and distinct from the financial affairs of the owner and other entities.
The inspection point is the
a. stage of the production cycle where products are checked to determine whether they are acceptable or unacceptable units
b. point at which costs are allocated between normal and abnormal spoilage
c. point at which the calculation of equivalent units is made
d. None of these answers is correct. – a. stage of the production cycle where products are checked to determine whether they are acceptable or unacceptable units
LIFO – most recent purchases are sold first and charges to cost of goods sold
*revenues* – Increases in owner's equity as a result of selling services or products to customers.
De vаcаciоnes (pаrt 1) Indicate the wоrd that dоes NOT belong. el modo de transporte [1]  en el avión [2]  en el aeropuerto [3] 
accounts payable – Bought supplies on account: credit _________
Callable Bonds – Bonds that may be retired prior to maturity at the option of the issuer.
fair value – the amount that a business could sell an asset for, or the amount that a business could pay to settle a liability.
Retained earnings equation – Net income less – dividends

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