Chapter One Accounting In Action

Expiration Date – The date signifying the end of the current project period, after which the grantee is not authorized to obligate grant funds.
Stock dividend Effects – No effect on assets, liabilities or stockholders' equity
debt to assets ratio – a measure of solvency calculated as total liabilities divided by total assets. It measures the percentage of total financing provided by creditors
Posting – Transferring from a journal to a ledger
taxes – operating costs, expenses
Merchandising Business – A business that purchases and sells goods
Outstanding checks – checks that have been drawn and subtracted from the depositor's checkbook, but which have not yet been presented to the bank for payment.
What is a Reporting Period Principle? – The ongoing life of the business is broken into regular intervals of time for the preparation of financial reports.
The concept of ________ expresses the belief that an orderly society must be governed by established principles to maintain order.
Callable Bonds – allows Issuer (Company) to early retire bonds prior to maturity
Capital – Amount invested into business by owner
The cоncept оf ________ expresses the belief thаt аn оrderly society must be governed by estаblished principles to maintain order.
fixed asset – any tangible resource that is expected to be used in the normal course of operations for more than one year and is not intended for resale
interrogator – one who asks questions of someone aggressively over a long.
Accounting Cycle – Is the process followed by entities to analyze and record transactions, adjust the records at the end of the period, prepare financial statements, and prepare the records for the next cycle.
Closed – an entry on the credit side of an expense account indicates the account has been
sole proprietorship – A business owned by one person

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