Accounting Chapter 1 Vocabulary

Mark-up – This could be the difference between cost and the selling price
Fiscal Period – Length of time for which a business summarizes and reports financial information
Balance Sheet – A snapshot of a business's finances at a fixed point in time
método de ajustar, convertir – translate adjust method
28.Expense recognition – includes incorrect use of assets and understatements of expenses.
Expenses – Equity
Present or future payments of cash that are incurred to help the company earn revenue
DR+
Continuity or "going concern" – Assume business will continue indefinitely
Committed Cost – Management does not have an option; Investments in facilities and equipment used in day to day operations are committed costs. These costs must be incurred or the company cannot operate. Long term in nature
unearned revenues – we received cash and recorded a liability before we earned the revenue.
Understandability – Information presented in a clear and concise fashion so that users can interpret it and comprehend its meaning
Performance at an acceptable but not outstanding level, coupled with little or no effort to improve one's current performance is termed:
Conservatism Principle – when in doubt, use the accounting method that will least likely overstate revenues and assets
expense recognition principle (matching principle) – the principle that matches expenses with revenues in the period when the company makes efforts to generate those revenues
Cost of merchandise – What it costs to buy merch from wholsesalers
Perfоrmаnce аt аn acceptable but nоt оutstanding level, coupled with little or no effort to improve one's current performance is termed:
The result of an excess of revenue over expenses. – Net Income
​General Amount Column – A journal amount column that is not headed with an account title

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