Financial Accounting

Credit terms – When the oayment is due and if any discount are offered
normal cost of goods sold – the cost of goods sold before adjustment
for any overhead variance.
Source Documents – information about business transactions is obtained from original business papers
fee basis – public accounting (business firm, gov., or non-profit, private accounting)
credit card sale – a sale in which a credit card is used for the total amount of the sale at the time of the transaction
Financial Statements – are provided to external users to communicate the results of operations and the company's financial position. Management is responsible for providing the financial statements
Net Income – Occurs when revenues exceed expenses. Net income increases equity.
product warranties – Balance sheet
Long-term liab.
____ allow a single access point to service different types of users.
Net Loss – Excess of expenditure over income.
Total Revenue < Total Expenses
márgen neto de servicios – net margin from services
The difference between net sales and cost of goods sold – Gross margin
____ аllоw а single аccess pоint tо service different types of users.
High-low method – a method of separating a mixed cost into its fixed and variable elements by analyzing the change in cost between the high and low activity level (p39)
When a company pays a bill, the acct cash will be – Credited
*accounting equation* – Assets = Liabilities + Owner's Equity.
unrealized external failure costs – environmental costs caused by
an organization but paid for by society

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