College Accounting Chapters 14

continuity (going-concern) assumption – states that the businesses are assumed to continue into the foreseeable future
Business Entity – An individual, association, or organization that engages in economics activities and controls specific economic resources.
The expense recognition principle, also called the matching principle – iii.
Interest Receivable – …Is a Debit balance account.
Working Capital as Percentage of Sales – (Current Assets – Current Liabilities)/Sales
*Whether business has sufficient assets to operate daily
I worked in various areas, including financial analysis, planning and budgeting and cost accounting. – Я работала в разных сферах, включая финансовый анализ, планирование и калькуляцию стоимости
unadjusted trial balance – List of accounts and balances prepared before accounting adjustments are recorded and posted.
An account which offsets another account: – Contra account
otras provisiones – other allowances
The age of account receivable tells you: – The number of days on average it takes debtors to pay their accounts. Eg. An age of accounts receivable of 42 days means on average it takes debtors 42 days to pay their accounts – this is over a month so if you offer monthly credit terms you might become concerned with this average as some debtors will be taking longer than 42 days considering some will pay within the 30 day monthly credit terms.
Credit – accounting term that is used for the right side of the account: mortgage payable, revenue
Goodwill – Only recorded when entire company is purchased. Excess of the purchase price at the company over market value or its net represents earning power if company assets.
Revenue recognition principle – The principle prescribing that revenue is recognized when earned

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