Accounting _

High/Low point method – The simplest approach to estimating the fixed and variable elements of a mixed cost. It bases the estimation on data from two extreme periods.
Investors – assessing amounts, timing, and uncertainty of future cash returns on their investment
Upon receipt of returned merchandise, the supplier usually issues a document confirming the amount of credit allowed that is know as a/an: – Credit memorandum or Credit memo
Owners equity – Its the owners claim of a company's resources
"Financial Leverage" Classify, Calculate, and Interpret. AKA "Leverage Ratio" – Solvency Ratio

Financial Leverage = [ Average Total Assets / Average Total Equity ]

Average = begin. and ending values of the period. Greater debt financing increases the financial leverage. Risk to equity holders and bondholders alike

Receipts – income received from the sale of goods and/or services; also, slips of paper documenting a purchase
Source Document – proof of a transaction
amortization – recognizes expense for intangible assets with identifiable useful lives
What risks are associated with the financial accounting records – errors in recording and updating the financial accounting records, unauthorized access to the accounting information, loss of destruction of accounting data
W4 form – Employees' Withholding Allowance Certificate.
All of the following are symptoms of diabetes except:
Marketing Info. management – Researching customers, trends, and competition
endorsement: a signature or stamp on the back of a check transferring ownership – endorsement: a signature or stamp on the back of a check transferring ownership
Gross profit – A company's revenue minus its cost of goods sold
T Account – An accounting device used to analyze transactions
All оf the fоllоwing аre symptoms of diаbetes except:
examples cash is recieved before revenue is earned – gift cads
retianer fees
supplies expense – operating expense, IS, debit
Employee Earnings Record – a business form used to record details affecting payments made to an enployee
the long-term liability decreases when the company repays the money owed – the company is charged interest for using the money
Interest Coverage Ratio – (Net Income + Interest Expense + Income Tax Expense)/(Interest Expense)
*See if business has enough income to service its debt

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