Ch 4 Completing The Accounting Cycle

Timeliness – Information is available prior to the decision.
Dividend Yield – Dividend per Share/Price per Share(using fiscal year end price per share)
Cash Flows from Investing Activities – cash flows relating to long-lived assets, such as property, plant, and equipment
Statement of cash flows – A financial statement that summarizes information about the cash inflows (receipts) and cash outflows (payments) for a specific period of time
Declining-balance method of depreciation – Multiplying the book value by a constant depreciation rate at the end of each fiscal period
"Pretax Margin" Classify, Calculate, and Interpret – Operating Profitability Ratios

= [ EBT / Revenue ]

How much interest expense affects earnings

Certified Public Accountant/C.P.A. – an individual possessing a college education, having practical experience in accounting and who has passed a comprehensive state examination in order to be certified to practice public accounting in that state.
Business ethics – the use of ethics in making business decisions
current ratio – measures short-term debt-paying ability
venture capital firms – provide additional financing often in the millions for a percentage ownership in the company
In the 1992 presidential election, one individual participated who was not a traditional politician. Instead, he was: 
working capital – = current assets- current liabilities
net loss – the difference between gross profit and expenses when expense is larger
Liabilities – amounts presently owed by a business
transferred-in costs – costs transferred from a prior process to a
subsequent process.
Special journal – A journal designed for recording a particular type of transaction is known as a
FOB shipping point – freight terms indicating that ownership of goods passes to the buyer when the public carrier accepts the goods from the seller
Expenses – Things that decrease the bussiness profits
In the 1992 presidentiаl electiоn, оne individuаl pаrticipated whо was not a traditional politician. Instead, he was: 
interest – fixed amount of money
Asset – An economic resource that is objectively measurable, results from a prior transaction, and will provide future economic benefit
Assets – The things one owns are

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