Basic Accounting Terms

How is depreciation calculated using the straight-line method? – (Cost – Salvageable Value) / Useful Life
Materials requisition form – a document that specifies the type and quantity of materials to be drawn from the storeroom and the identifies the job that will be charged for the cost of those materials.
Entity prospective – Companies are viewed as separate and distinct from their owners ( present shareholders).

The assets are viewed as assets of the company and not of the specific creditor or shareholder.

Investors have claims on assets in the form of liability or equity claims and is consistent with the present business environment.

Inventory Turnover – (COGS/Ave. Inventory), remember 365/inventory turnover = # days items remain in inventory
Why do accountants use a worksheet ? – To prepare financial statements
What side do liabilities decrease on? – Dr
B cells are involved in 
Operating expenses – Income statement
Heading after Gross profit
selling expenses – Expenses of promoting sales, such as displaying and advertising merchandise, making sales, and delivering goods to customers.
Members of firms that perform accounting services for other companies. – public accountants
Predetermined Overhead Rate (POHR) – used to assign OH cost to products and services based on estimated data established before the period begins
restrictive endorsement – An endorsement restricting further transfer of a check's ownership.
fixed assets – physical resources that are owned & used by business & are permanent or have a long life
B cells аre invоlved in 
patrimony – 1) родовое, наследственное имение, вотчина 2) наследство; наследие to spend the whole patrimony — промотать все наследство Syn: inheritance, heritage
Profit – the amount of money left over after expenses are taken out
Purchase Requisition – A list sent to the purchasing department showing the items to be ordered.
Formula for accounting – Assets=liabilities + owner's equity

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