Accounting

obsolescence – refers to the condition of plant asset that is no longer useful in producing goods or services with a competitive advantage because of new improvements
Sale on Account (charge sale) – Sale for which cash will be received at a later date
Corporation – A business organized as a separate legal entity under state corporation law, having ownership divided into transferable shares of stock.
Income Statement – A financial statement that shows one aspect of the financial health of a company: its profitability.
Accounting – The process of planning, recording analyzing and interpreting financial info
Net Profit – When revenue exceeds expenses
Organizations are creating policies for workplace relationships.
recovering bad debt – two entries when collecting later payments. First reverse write-off. Second record amount for reinstated account. Two separate entries: debit accounts receivable, credit allowance for doubtful accounts; debit cash, credit accounts receivable
Fiscal year – An accounting year ending on some date other than December 31st is called
Orgаnizаtiоns аre creating pоlicies fоr workplace relationships.
Additional Problem # 4.
Total current assets at December 31, 2001 – cash + accounts receivable + inventory

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