Financial Accounting Ch 5

revenue recognition – the GAAP principle that revenue is recorded on the date it is earned even if cash has not been recieved
Current liabilities – require cash within the current accounting period
Two Main Qualities of Accounting – Relevance and Reliability
specific identification inventory cost flow method – Each item sold & purchased is individually identified; Required for goods that are not ordinarily interchangeable; & that are produced & segregated for specific projects.
accounts receivable – amounts owed to the business by customers who purchased on credit
"Interest Coverage" Classify, Calculate, and Interpret – Solvency Ratio

Interest Coverage = [ EBIT / Interest Payments ]

Ability to repay its debt obligations. LOW: difficulty meeting its debt payments

net loss – the difference between total revenue and total expenses when total expenses are great
Waltz's neorealism was based loosely on established thought from what other field?
Final Processing/Reporting. – The process of communicating the results achieved during accounting period to others.
What is the difference between cost of plant assets and accumulated depreciation to date – Book Value
Leadger – Records the subsidiary contents
Wаltz's neоreаlism wаs based lооsely on established thought from what other field?
Monetary unit assumption – Principle that assumes transactions and events can be expressed in money units

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