Accounting: Debits & Credits

New owner of a check (Pay to the order of…..) – Special Endorsement
Management – responsible for preparation of company's financial statements for public use
maturity date – the date on which payment is due on a promissory note
Liabilities – any debts that a business owes.
Purchases Allowance – Credit allowed for part of the purchase price of merchandise that is not returned, resulting in a decrease in the customer's accounts payable.
Net Pay – take home pay after deductions
consistency – A concept that relates performance assessments over time.
The general formula for an ester is
Contra Asset – A deduction from an asset e.g. accumulated depreciation
Statement of Owner's Equity – Financial statement which reports the changes in the owner's financial interest during the period.
Liquidity – The ability a firm has or the ease a firm has to convert an asset to cash if needed
Multiple step income statement – An income statement that shows several steps in determining net income.
sales return and allowances – minus income
Debt Inv. – Available for Sale – Balance sheet – fair value, unrealized gains and losses in AOCI
Income statement – interest income, realized gains and losses
The generаl fоrmulа fоr аn ester is
Ignores the economic consequences of a standard or rule. – Neutrality.
Transactions that impact beginning balance of Owner's Equity – Owner invests more money in the business
Business makes a profit or loss
Owner takes assets out of the business
newsagent – a shopkeeper who sells newspapers
Summarizing. – Brining accounting data together in a way that will further enhance its usefulness, usually by means of reports and statements.
Price-earnings ratio – Stock price/Earnings per share

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