revenue – Inflows from primary activities, increases to retained earnings. Sales
Cost of goods sold – the total cost of merchandise sold during a period
Cost principle – Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions
return on assets – eszközarányos megtérülés
Capital stock – Balance Sheet
operating assets – cash, accounts receivable, inventory, plant & equipment
Heuristics are rules of thumb.
Explain the role of the balance sheet. – The balance sheet is a permanent document that is used to record what you own (assets) and what you owe (liabilities) on a specific date. The balance sheet provides a snapshot of your financial position. The difference between the value of what you own and what you owe represents your net work.
Wage-Bracket Table Method – A simple method to determine the amount of federal income tax to be withheld using a table provided by the government.
recognized revenue – revenue that has been recorded so that it will show up on the income statement
partnership – a written agreement setting forth the conditions under which a partnership is to operate
discount period – a specific number of days during which a discount is available if the account is paid
Heuristics аre rules оf thumb.
Compound entry – a journal entry that involves three or more accounts
#26. The matching concept: – is used in accrual accounting to determine the proper period to record expenses