Accounting Vocabulary Chapters 79

Торговые активы – Trading assets
Examples of Cash + Profit: – – Wages
– Advertisement
– Interest of Investment
– Cash Sales
– Interest paid on loan
– Commission received
– Electricity
– Council Rates
Liquidity Ratio – firm's ability to pay its immediate debts
Income Summary: – profit or loss – Net income (revenue > expenses) = profit; net loss ( revenue < expenses) = loss
expense recognition principle (matching principle) – the principle that matches expenses with revenues in the period when the company makes efforts to generate those revenues
Sole proprietorship – A business owned by one
person.
Withdrawals – Reduce owner's equity as a result of the owner taking cash or other assets out of the business for personal use.
Selling – Providing customers with goods and services
Since a predetermined overhead rate is established before a period begins, this rate is revised many times during the period to compensate for inaccurate estimates previously made.
Accounting equation – Assets less Liabilities = Equity (Format for Balance Sheet)
the principal that revenue to be reported when earned – revenue recognition
Code of Conduct – ethical behavior of a company's employees
Since а predetermined оverheаd rаte is established befоre a periоd begins, this rate is revised many times during the period to compensate for inaccurate estimates previously made.
matching concept – match expenses incurred w/ revenue they generated in same period
Payroll Register – A record of payroll information for each employee for the pay period.
Restrictive Endorsement – an endorsement restricting further transfer of a check's ownership
trila balance – list of ending balances of all the coounts in a ledger
ethics – a code of conduct that applies to everyday life

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply