Accounting Terms Chapter 912

Revenue Recognition Principle – says that revenue must be recognized in the period which it is EARNED
Check – A business form ordering a bank to pay cash from a bank account
Banker's method – a method of computing interest based on the assumption that there are 360 days in a year.
Mortgage – A loan that is secured against property.
Turnover – Sales/ Operating Assets
EBIT – -income statement
Operating profit(operating income) – non-recurring items
Inventory turnover – the number of times the average in inventory has been sold or use up (turned over) during a period.
Income tax. – A tax levied on the earnings of individuals and businesses by Federal, state and local governments.
Balance sheet – an accounting report that details a firm's financial position at a particular point in time by reporting its assets, liabilities and owner's equity
the five journal system allows for employee specialization in a certain area, this is know as… – Division of labour
For a population to evolve, there must be genetic differences between organisms in that population. These differences arise by
PERPETUAL INVENTORY SYSTEM – THE COMPUTERIZED ACCOUNTING INVENTORY SYSTEM IN WHICH THE BUSINESS KEEPS A CONSTANT/RUNNING RECORD OF INVENTORY AND COST OF GOODS SOLD
Purchase discount – a cash discount claimed by a buyer for prompt payment of a balance due
Earnings per share – the amount of net income after federal income tax belonging to a single share of stock
Who carries the end cost of vat? – The final consumer
ACCOUNTING EQUATION – THE BASIC TOOL OF ACCOUNTING, MEASURING THE RESOURCES OF TEH BUSINESS AND THE CLAIMS TO THOSE RESOURCES: ASSETS = LIABILITIES + OWNERS' EQUITY
Fоr а pоpulаtiоn to evolve, there must be genetic differences between orgаnisms in that population. These differences arise by
Debit – An entry on the left side of an account.
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.

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply