Horngren’s Accounting Chapter 2 Vocabulary

The balance in the accumulated deprection account at the end of the second year of operations will equal – depreciations expense for all prior years
A Decrease in proprietor"s capital can result in What (2) ways – 1. Owner taking assets out of business

2. Payment of an expenses

Revenues-sales discounts-sales return-sales allowance – Net sales
Federal Acquisition Regulations – FAR – The principal set of rules in the Federal Acquisition Regulation System.
Npv – Of future cash flows, considers the cash flows, the risk, the time value of money and shows if company is gaining value
Счет-фактура – Invoice
Net Income – Revenues-Expenses
Normal cost system – a costing system in which overhead costs are applied to a job by multiplying a predetermined overhead rate by the actual amount of the allocation base incurred by the job.
Accounting equation – Asset=liability+owner's equity
In theater, the point in the plot in which the setting and characters are explained is called the
interest rate – a percentage of the outstanding principal
securities and exchange commission (SEC) – the agency of the US government that oversees US financial markets and accounting standard-setting bodies
Bilateral Modification – Change to a contract that requires signatures of both the contractor and the contracting officer.
The company issued common stock to owners for $100,000 cash
● The company purchased $50,000 of equipment by making a $20,000 cash down payment and signing a note payable for the balance – ● The company made a $13,000 cash payment on the note payable from the purchase of equipment
● The company sold a piece of equipment for $3,000 cash. The equipment was sold at cost, thus there was no gain or loss on the sale.
Check – A business form which a company uses to pay cash from a bank to an account
In theаter, the pоint in the plоt in which the setting аnd chаracters are explained is called the
relevant range – the range of activity within which assumptions about variable and fixed costs behavior are valid
The net profit percentage tells you – The proportion of each sales dollar which is profit for the year/net profit. A net profit percentage of 11% means every $1 of sales generated 11c of profit for the year. The gross profit percentage minus the total expense percentage
owner's equity – rights of owner
tax reduction – vergi indirimi
interest – cost of borrowing money

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