Accounting Ii Chapter 21 Vocabulary

Net book value – Is calculated by deducting accumulated depreciation from the long-term asset account
Adjusted Trial Balance. – The trial balance taken after adjusting entries have been recorded.
Quick Assets – cash, marketable securites & accounts receivable
interés resarcitorio – compensatory interest
common stock authorized – maximum number of shares a corporation can sell
With respect to the income statement,
A. contra-revenue accounts do not appear on the income statement.
B. sales discounts increase the amount of sales.
C. contra-revenue accounts increase the amount of operating expenses.
D. sales discounts are included in the calculation of gross profit. – D
Office Furniture – Normal Balance: Debit
Type of Account: Asset
Financial Statement: BS
A paper showing quality, description, prices of items, total amount of purchase and terms of payment is: – Invoice
Dr. Jenkins' office can be found in what building?
Direct labor – This is the cost of wages for individuals who work on specific products, or in other words, the cost of wages of employees who are directly involved in converting raw materials into finished goods.
Capitalizing – recording expenditures as assets and charging them to expense by a systematic allocation over a number of years
Income purpose test – Must be an expense for the purpose of gaining
Dr. Jenkins' оffice cаn be fоund in whаt building?
A written order by a buyer for merchandise or other property specified in a purchase requisition is known as a: – Purchase Order

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