Financial And Managerial Accounting Chapter 1 Terms

purchase allowance – is a reduction in the cost of defective or unacceptable merchandise that a buyer acquires
The IASB's standard-setting structure includes all of the following except

A. Standing Interpretations Committee

B. Standards Advisory Council

C. Standards Comparison Committee

D. Trustees – D. Trustees

accounts receivable – Received cash on account: credit _________
Total Assets = – Total Liabilities + Total Stockholder's Equity
cost effectiveness – requires that the benefits of accounting for and reporting information outweighs the cost
Non current liabilities – Debts or obligations the company does not expect to pay off or satisfy within the next year
-note payable ( not due within a year)
-Any payables not due within a year
Cash Flows – Inflows and outflows of cash into and out of a business.
If the market price is $40 in a perfectly competitive market, the marginal revenue from selling the fifth unit is
debt to equity ratio – total liabilities / total stockholder's equity
business entity assumption – means that a business is accounted for separately from its owner or other business entities.
owner distributions – when a corp distributes assets to its owners it decreases both company assets ad total equity – opposite of owners investment.
anything of value that is owned – asset
Depreciable Cost – Original Cost – Salvage Value = Depreciable Cost
If the mаrket price is $40 in а perfectly cоmpetitive mаrket, the marginal revenue frоm selling the fifth unit is
Work Sheet – used to summarize general ledger information to prepare financial statements
borrower – sells or issues the bond and records a liability

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