Financial And Managerial Accounting Chapter 1 Terms

Cash basis – Records revenue when cash is received & expenses when cash is paid
accounting equation – An equation showing the relationship among assets, liabilities, and owner's equity
intangible assets – one of the common groups on the classified balance sheet

non-physical assets expected to be used for more than one year

integrity – means the accountant is honest and candid and subordinates personal gain to service and the public trust
Assets, Liabilities, and Stockholders' Equity – accounts are PERMANENT accounts – The year end balance becomes next year's beginning balance.
separate by entity – the accounting concept that treat a business as distinct form its owners , creditor, and customer
Asset Turnover Ratio – Net Sales / Average total assets
The function of the cell labeled #46 is
Liabilities – Something owed to another business entity (creditors claims on assets
#13. The sale of inventory to a customer on account is recorded with debits to: – cost of goods sold and accounts receivable
trial balance – a proof of equality of debits and credits in a general ledger
service revenue – sales of services for cash or on credit
The functiоn оf the cell lаbeled #46 is
the company is charged interest for using the money – …
purchases allowance – Credit allowed for part of the purchase price of merchandise that is not returned, resulting in a decrease in the customer's accounts payable.
Statement of Stockholders' Equity – Reflects the differences between beginning and ending balances for all accounts in the stockholders equity section of the balance sheet. It replaces the Statement of Retained Earnings.
Cost principle – A principle that states that acquired assets and services should be recorded at their actual cost.
Liability, Balance Sheet, Credit, Permanent – Unearned Revenue

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