Chapter 1 Introduction To Accounting

retailer – an organization that sells to ultimate consumers
(Purpose of) Statement of Accounting Policies – To show the assumptions followed in preparing the statements and how financial elements have been measure for the entity.
I acted as a liason with – Я выступала как связующее звено с
Income statement – ne of the main financial statements (along with the balance sheet, the statement of cash flows, and the statement of stockholders' equity). The income statement is also referred to as the profit and loss statement, P&L, statement of income, and the statement of operations. The income statement reports the revenues, gains, expenses, losses, net income and other totals for the period of time shown in the heading of the statement. If a company's stock is publicly traded, earnings per share must appear on the face of the income statement.
Historical cost principle – assets must be recorded at historical cost: cash paid plus current dollar value of all non cash considerations given on date of exchange
paid-in capital – the amount stockholders have invested in the company
Social security – F.I.C.A. refers to
Stated rate < market rate – discount, CV increases
An unfavorable variable overhead spending variance indicates that:
a. variable overhead items were not used efficiently
b. the price of variable overhead items was more than budgeted
c. the variable overhead cost-allocation base was not used efficiently
d. the denominator level was not accurately determined – b. the price of variable overhead items was more than budgeted
Total Earnings – The total pay due for a pay period before deductions.
Allostasis is a term used for the body's response to:
"Interest Coverage" Classify, Calculate, and Interpret – Solvency Ratio

Interest Coverage = [ EBIT / Interest Payments ]

Ability to repay its debt obligations. LOW: difficulty meeting its debt payments

statement of owner's equity – summary of changes in owner's equity during a specific period of time
average-cost method – an inventory costing method that uses the weighted-average unit cost to allocate the cost of goods available for sale to ending inventory and cost of goods sold
Unit of Measurement – business transactions are stated in numbers that have common values; that is, using a common unit of measurement
Quick assets – cash, marketable securities, accounts and notes receivable.
paramedic – One who is trained to do emergency medical aid but not a fully qualified doctor.
Allоstаsis is а term used fоr the bоdy's response to:
Preferred stock – Gives its owners certain advantages over common stockholders. They receive dividends before the common stockholders and they also receive assets before the common stockholders if the corporation liquidates. This type of stock is rare
to take risks – рисковать
net credit sales/ avg accounts receivable – Accounts receivable turnover
-how many times average accounts rec is collected in a year
21. The costs of providing goods and services to customers are referred to as:
A. Assets.
B. Expenses.
C. Liabilities.
D. Revenues. – B. Expenses.

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