Intro To Accounting 20653 Exam 4 Laurie Wood Tcu

Accounts Receivable Turnover. – Measures how many times per year receivables are collected. CALCULATION: net credit sales divided by Average Accounts Receivable. Average Accounts Receivable (Beginning Accounts Receivable – Ending Accounts Receivable) divided by 2.
code of conduct: a statement that guides the ethical behavior of a company and its employees – code of conduct: a statement that guides the ethical behavior of a company and its employees
Gain on Disposal – if proceeds from sale > net book value
trading – debt and equity securities bought and held primarily for sale in the near term to generate income on short-term price differences
Posting – the process of transferring journal entry information to the ledger
Organized summaries of a business's financial activities – Accounting Records
LIFO tax advantage – Prices rise-> Lowest taxable income-> lowest income tax-> increases cash available
property – is anything of value that is owned or controlled.
Percentages and trials-to-criterion are considered derivative because they _____.
tangible assets – have a physical presence
impuesto a las tranferencias bancarias – tax on banks credits and debits
Double-Entry Accounting – A system that recognizes the different sides of business transactions as debits and credits.
accrual basis – Revenues are recognized when earned and expenses are recognized when incurred.
Draw – when owner or business takes money
Withdrawals – owner taking money from the business
Percentаges аnd triаls-tо-criteriоn are cоnsidered derivative because they _____.
transaction – A business activity that changes assets, liabilities or owners equity.
accounting – planning, recording finical info
marketing principle – record expenses when they are incurred
Operating cycle – The time between aquisition of materials into a process and its realsiation in cash or cash equivalent

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