Accounting Unit 2

Inventory Turnover Ratio – cost of goods sold/ average inventory
Trading Securities – Are all investments in stock or bonds held primarily for the purpose of active trading (buying and selling) in the near future (classified and short term).
Business ethics – Do you some ethics and making business decisions
Inventory Turnover – COGS/Inventory
False – T or F: Recording business costs in terms of hours required to complete is an application of the unit of measurement concept.
net sales equation – sales – sales discounts – sales returns and allowances = net sales
Step 3 of handling a transaction – Prepare and analyze the trial balance
time ticket – a source document by which direct labor costs are
assigned to individual jobs.
Materials Inventory (Raw Materials) – consists of cost of the direct and indirect materials that have not entered the manufacturing process
Share price – =EV + cash – debt /shares outstanding
An economic principle that explains why countries produce different goods and services is
Book Value – Cost of a fixed asset less accumulated depreciation
686 – A credit sale of $750 is made on June 13, terms 2/10, net/30. A return of $50 is granted on June 16. The amount received as payment in full on June 23 is:
Outstanding Stock – Stock that is held by investors
reserva por revalúo técnico – reserve for appraisal
Owner investments – Assets put into the business by the owner
45. The two categories of stockholders' equity usually found in the balance sheet of a corporation are:
A. Common stock and liabilities.
B. Assets and liabilities.
C. Common stock and retained earnings.
D. Revenues and expenses. – C. Common stock and retained earnings.
Net Loss – When expenses exceed revenue
An ecоnоmic principle thаt explаins why cоuntries produce different goods аnd services is
mail receipts – billing and credit sales in big businesses
debit – enter an amount on the left side

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