Basic Accounting Math

full disclosure principle – requires company to include all information on financial statements that would impact user's decision
Balance in allowance for doubtful accounts at end of year – Beginning Balance + Bad Debt Expense Estimate – Write-Offs = Ending Balance
Fiscal Year – FY – Any twelve-month period for which annual accounts are kept (at Lehigh, July 1 through June 30).
dishonored check: a check that a bank refuses to pay – dishonored check: a check that a bank refuses to pay
International Accounting Standards Board
(IASB) – An international accounting standard-setting
body responsible for the convergence of accounting
standards worldwide.
Accounting System – A process designed to accumulate, classify, and summarize financial data.
potter – one who makes pots, cups, etc.
A production possibilities frontier that is a straight line is the result of:
Profit and loss statement equation – profit= revenue – expenses
disadvantages of entrepreneurs – risk, responsibility, long hours, rely on employers
Calculate "gross profit" – = Net sales – COGS
Service Mapping – A method of documenting what services are available in a community. Information from officials, community members and site visits are collated on simple hand drawn maps to give a snap short picture of the quality and quantity of services available at any given moment.
Return on assests – ROA – is stated in ratio form as income divided by assets invested.
activar costos de endeudamiento – to capitalize borrowing costs
A prоductiоn pоssibilities frontier thаt is а strаight line is the result of:
depreciable cost – difference between its original cost and its salvage value
operating ledger – i┼čletme defteri

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