Accounting Chapter 4 Vocab

What type of asset is a supply – Short-life
cost constraint – cost to provide info should be weighed against benefit users will gain from having info available
cost saving – Kostenersparnisse
Current Asset – (Short-Term Asset)
an asset that is expected to be converted to cash, sold, or consumed during the next 12 months, or within the business's normal operating cycle if longer than a year
Cash Flow from Operating Activities, and examples – CFO- Are cash flow that are directly related to earning income. Example, collecting cash from costumers, pay salaries, pay bills, pay to suppliers.
Statement of Owner's Equity – Report of changes in equity over a period; adjusted for increases (owner investment and net income) and for decreases (withdrawals and net loss).
debts to assets ratio – total liabilities / total assets
SECTION 9: Answering questions–question 5 Remember: answer the question by writing just one complete sentence. Special letters, should you need them:   á   é   í   ó   ú   ñ ¿Tienes que trabajar mañana?
Incremental Analysis Approach – ΔCM-ΔFC=ΔNI
shareholder – Another name for stockholder.
Schedule of Accounts Payable – A listing of vendor accounts, account balances, and total amount due all vendors.
Not counting spoiled units in the equivalent-unit calculation results in:
a. lower cost per good unit.
b. higher cost per good unit
c. better management information
d. Both a and c are correct. – b. higher cost per good unit
SECTION 9: Answering questiоns–questiоn 5 Remember: аnswer the questiоn by writing just one complete sentence. Speciаl letters, should you need them:   á   é   í   ó   ú   ñ ¿Tienes que trаbajar mañana?
revenue recognition principle – Accounting principle that revenue should be recognized int he accounting period in which it is earned (generally at the point of sale)
Expense – decrease in assets or an increase in liabilities resulting from operating activities undertaken to generate revenue
The following amounts relate to Amato Company for the current year: Beginning Inventory, $20,000; Ending Inventory, $28,000; Purchases, $166,000; Purchase Returns, $4,800; and Freight-Out, $6,000. The amount of Cost of Goods Sold for the period is
A. $159,200.
B. $169,200.
C. $162,800.
D. $153,200. – D

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