Chapter 1 Introduction To Accounting And Business (accounting Terms)

Company – A separate legal entity with owner ship evident by transferable shares
rent revenue – Money received for rent.
common stock – when a corporation issues only one class of stock, also called capital stock
Plants and equipment – factories and production machinery
non-current liabilities – debts which will not have to be paid back in the next year
Describe the characteristic of relevance. – Relevant means that all information useful for decision making is present in the financial statements. In other words, if a piece of relevant information is omitted or misstated, the user's interpretation of the statement would change.
The expanded head at each end of a long bone is called the __________.
non-for-profit organizations – these organzations operate for purpose other than making a profit.
batch report – A report of credit card sales produced by a point-of-sale terminal
Going-concern assumption (one of accounting assumptions) – that accounting information reflects a prsumption that business will continue operation instead of being closed or sold.
When deciding to accept a one-time-only special order from a wholesaler, management should do all of the following EXCEPT:
a. analyze product costs
b. consider the special order's impact on future prices of their products
c. determine whether excess capacity is available
d. verify past design costs for the product – d. verify past design costs for the product
GROSS MARGIN PERCENTAGE – GROSS PROFIT / NET SALES REVENUE

A MEASURE OF PROFITABILITY ALSO CALLED GROSS PROFIT PERCENTAGE

Fair Value Principle – says that assets and liabilities should be reported at the price they would receive if sold
The expаnded heаd аt each end оf a lоng bоne is called the __________.
Journal – : a form for recording transactions in chronological order
intangible assets increase when… – the company buys the intangible asset
Shareholders – Owners of a company who receive dividends (reward for shareholdings).
Deferrals – dollars first, action later

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