Financial Accounting Ratios

Trial Balance – list of all accounts with their balances to provide a check on the equality of the debits and credits
21.An enterprise – is a project or undertaking, typically one that is difficult or requires effort.
Compound entry – When three or more accounts are required in one journal entry, the entry is referred to as a
Extension – An additional period of time given by the sponsor to an organization for the completion of work on an approved grant or contract. It allows previously allocated funds to be spent after the original expiration date.
Maker – The individual who makes a promise to pay on a promissory note
Account title – The name given to an account
Which cost estimation method analyzes accounts in the subsidiary ledger as variable, fixed, or mixed using qualitative methods?
a. the account analysis method
b. the conference method
c. the industrial engineering method
d. the quantitative analysis method – a. the account analysis method
accounts payable – Bought supplies on account: credit _________
Earnings per Share – (net income – dividends on preferred stock)/ average shares of common stock outstanding
impuesto a las tranferencias bancarias – tax on banks credits and debits
A client can be a home computer or a node in an organization’s _____.
net effect of cash dividends – decrease in Retained Earnings and Cash
Chart of Accounts – List of accounts used by a company; includes an identification number for each account.
source document – a business paper from which information is obtained for a journal entry.
A client cаn be а hоme cоmputer оr а node in an organization’s _____.
The accounts receivable turnover ratio is computed by dividing
A. total sales by average net accounts receivable.
B. net credit sales by average net accounts receivable.
C. total sales by ending gross accounts receivable.
D. net credit sales by ending gross accounts receivable. – B
Premium – The excess of the issue price over the face value of bonds.
explanation – THIRD on journal below credits and to the right- 1"

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