posting – transfer debits & credits from journal entries to accounts
FASB – Privat-sector group that sets both broad and specific principles
Contribution Margin Ratio – Contribution Margin / Sales
Owners – Investors who originally establish the business contribute money to the company in exchange for shares of ownership
Bookkeeping – A part of accounting that involves only the recording of economic events.
Long-term investments – meaning those we expect to hold for more than one year. Some common long-term investments include notes receivable, investments in the stock or bonds of another company, and land that a company is holding for a future plant site. Companies often purchase stock of another company in order to control or own the other company.
Understand the Objective of Financial Reporting – The objective of general-purpose financial reporting is to provide financial information about the reporting entity that is useful to present and potential equity investors, lenders, and other creditors in making decisions about providing resources to the entity.
Those decisions involve buying, selling, or holding equity and debt instruments, and providing or settling loans and other forms of credit.
Information that is decision-useful to capital providers may also be helpful to other users of financial reporting who are not capital providers.
term bonds – mature on a single date
Quality of Income Ratio – (Cash Flow Provided By Op. Act.)/(Operating Income)
*How accrual income relates to cash
According to your text, the success of a commercial product can be gauged by ______.
Petty cash funds – A cash fund used to pay relatively small amounts.
Financial Accounting – Accounting field that provides economic and financial information for investors, creditors and external users.
Transportation In Account – See Freight In Account. An account showing transportation charges for items purchased.
Capital – The account used to summarize the owner's equity
Accоrding tо yоur text, the success of а commerciаl product cаn be gauged by ______.
Restrictive endorsement – an endorsement restricting further transfer of a check's ownership
rent revenue – money received for rent
business – an organization in which basic resources (inputs) such as materials and labor, are assembled and processed to provided goods or services (outputs) to customers