Cost Accounting Final

Net loss – occurs when expenses exceed revenue which decreases equity
book value of common equity per share – book value of common stockholder's equity / number of common shares outstanding
retained earnings – an amount earned by a corportation and not yet distributed to stockholders
Drawing – owner's equity, increase and normal balance is debit side, decrease is credit side
What are the contents of financial statements? – 1. Balance sheet
2. Income statement
3. Cash flow statement
4. Statement of changes in equity
5. Supporting notes to the above expanding on the detail they contain
6. Accounting policies
7. Directors report
8. Auditors report
9. Operating and financial review
10. Five year summary
Land – Asset
Land, does not diminish over time
DR +
accounting equation – an equation showing the relationship among assets, liabilities, and owner's equity
Earnings Per Share – the amount of net income available to common stockholders per share of common stock outstanding
Limited Liability – If the entity gets into financial difficulty and cannot repay its debts, the personal assets of the owner/members are protected and they cannot be forced to sell such assets to repay the entity's debts.
Keynes argued that the transactions component of the demand for money was primarily determined by the level of people's ________, which he believed were proportional to ________.
current assets – Assets that a company expects to convert to cash or use up within one year or the operating cycle, whichever is longer
bienes de disponibilidad restringida – restricted assets
Trade discount – a reduction in the list price granted to customers
Creditors – Individuals or organizations entitled to receive payments.
Keynes аrgued thаt the trаnsactiоns cоmpоnent of the demand for money was primarily determined by the level of people's ________, which he believed were proportional to ________.
Cost Constraint – Constraint that weighs the cost that companies will incur to provide the information against the benefit that financial statement users will gain from having the information available
Credit card sales – A sale in which a credit card is used for the total amount of the sale at the time of the transaction
Activity Analysis. – Measures how efficiently a firm is utilizing its assets.
Net Income – net earnings, profit, selling more than the cost of producing (revenue – expenses, the bottom line), the excess of total revenues over total expenses
Intangible Assets – Long term assets used to produce or sell products or services usually lack physical form and have uncertain benefits

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