Accounting 100

Source Document – a business paper from which information is obtained for a journal entry
Pay Period – The amount of time over which an employee is paid.
Discount – The excess of the face value over the issue price of bonds.
Ledger – Record containing all accounts (with amounts) for a business also called a general ledger.
Operating efficiency – Gross operating profit / Total revenue
False – The accounting equation does not have to be in balance to be correct
con garantía real – secured with real property
time period – annually, quarterly
Bookkeeping – Recording function of the accounting process
asset – an economic resource that is expected to benefit the business in the future
Under certain circumstances you would not try to reduce reactivity, but instead utilize reactivity as part of the intervention.
Account – A detailed record of all increases and decreases that have occurred in an individual asset, liability, or equity during a specific period.
Service Business – business that provides a service for a fee
An inflow of money or other assets that results from the sales of goods or services or from the use of money or property; also called income. – Revenue
Income from Operations – Gross profit – operating expenses
Internal Controls – Policies that allow managers to control and monitor business activities such as company policies, accounting procedures, and physical safeguards to protect assets.
Under certаin circumstаnces yоu wоuld nоt try to reduce reаctivity, but instead utilize reactivity as part of the intervention.
Market-to-Book Ratio – Market Cap/Owners' Equity
Briefly describe the cash-based method of accounting. – Under the cash-based method of accounting, revenue and expenses are recorded only when the cash is received or paid.
High-low method – a method of separating a mixed cost into its fixed and variable elements by analyzing the change in cost between the high and low activity level (p39)

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