Accounting: Chapter 1

Accounts Receivable – Claims for future collection from customers.
management – the people who are responsible for ensuring that a company meet its goals of profitability and liquidity
GAAP – [generally accepted accounting principles] RULES based, used only in the US, makes companies statements extremely transparent, regulated by FASB, no cash basis accounting, very specific rules about value of assets and revenue recognition
Service Business – A business that performs an activity for a fee.
Long term – More than one year to pay
Two measurements of the Mixed Attribute Measurement Model – Historical cost or exchange price
When we look back historically, we see that 75% of the countries in the world started off poor. The other 25% started as middle income countries.  
Liabilities – An entity's obligation to transfer economic benefits to other entities in the future
Marketing overhead – Расходы на продажу
Not cash and doesn't affect profit – …
When we lооk bаck histоricаlly, we see thаt 75% of the countries in the world started off poor. The other 25% started as middle income countries.  
20% – Are legal fees deductable
long-term assets – evaluating alternative long-term investments by discounting future cash flows
determining the value the assets acquired under deferred payment contracts
measuring impairments of assets

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