Intro To Accounting 20653 Exam 2 Laurie Wood Tcu

Natural Resources – Assets physically consumed when used. Examples are timber, mineral deposits, and oil.
loss – businesses that spend more money then they earn.
Fixed- Assets – Productive assets (PP&E) that are not intended for sale.
depletion – deprecation of natural resources
Net Sale Revenue – The amount a company has made on sale of merchandise inventory after returns, allowance, and discounts have been take out. Sales revenue less sale returns and allowance and sale discount.
Matching – match revenue owned for that period to when the expense is incurred.
allowance for bad debts – current contra asset
________ is a measure of how effectively a company engages with its various online stakeholders in a mutually beneficial exchange of information.
Footing – A total, written in small pencil figures, under the last entry in a column is the
Balance Sheet (financial statements) – describes a company's financial position (type and amounts of assest, liabilies and equity) at a point in time.
Cash Discounts – A deduction from the invoice price granted to induce early payment of the amount due
Current assets – Assets that a company expects to convert to cash or use up within one year.
Bank statement – Report of deposits, withdrawals, & bank balances sent to a depositor by a bank
Monetary Unit Assumption, Economic Entity Assumption, Periodicity Assumption, Going Concern Assumption, Accrual Basis – Five Assumptions of Financial Reporting
Units of use method – HC-RV/EUL x use
________ is а meаsure оf hоw effectively а cоmpany engages with its various online stakeholders in a mutually beneficial exchange of information.
Investments – when a company uses excess cash to purchase a financial instrument (sticks or bonds) to earn a return
can be classified either short term or long term depending on how long the company intends to hold
Debt-to-total-assets Ratio – Total Liabilities / Total Assets

Lower is better. Measures solvency.

Pos.Ref – the column in journal and ledger that providers for cross referencing between the two
True – T or F: The relationship among assets, liabilities, and owner's equity can be written as an equation

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