Financial And Managerial Accounting Chapter 1 Terms

Component percentage – the percentage relationship between one financial statement item and the total that includes the item
Book value (undepreciated cost) – the cost of a fixed asset less its accumulated depreciation.
Revenue – An increase in owners equity resulting from the operation of a business
purchase discounts are: – credits to merchandise purchase account
Information – communicating information about a product
Key Trends (FIFO vs. LIFO) – During periods of increasing prices (inflation), using FIFO results in (1) lower COGS and therefore higher Gross Profit & Net Income on the Income Statement; and (2) higher Ending Inventory on the Balance Sheet. Note: the opposite effect would occur during periods of decreasing prices (deflation)
Income statement – Another name for profit & loss statement is
Fiscal period – a period of time covered by an income statement.
Which of the following is an effect of dietary fiber?
Expense – A decrease in owner's equity resulting from the operation of a business.
STATEMENT OF EARNINGS – SUMMARY OF AN ENTITY'S REVENUES, EXPENSES, AND NET INCOME OR NET LOSS FOR A SPECIFIC PERIOD. ALSO CALLED INCOME STATEMENT OR THE STATEMENT OF OPERATIONS.
Unrealized Holding Gains or Losses – Are amounts associated with price changes of securities that are currently held.
Accrual-basis accounting – Assets with relatively long useful lives that companies use in operating the business.
operating section – a report of the revenues and expenses of the company's principal operations
Which оf the fоllоwing is аn effect of dietаry fiber?
Term loan – A form of external finance provided by banks and other lenders for a specific purpose and repaid over time.
Debit office supplies & credit accounts payable – Purchase of office supplies on credit is recorded by

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