Accounting Terminology

Known Liabilities – Accounts payable, sales taxes payable, unearned revenues, short-term notes payable, payroll liabilities, multi- period known liabilities
Cash Budget – Shows the expected CR and CP for the coming month. Also shows the change in the bank balance and the expected closing balance.
Net – something has be reduced
Monetary Measurement – All transactions, assets liabilities, incomes, expenses, and equity are recorded and reported in New Zealand dollars.
Standard account – Formal account. Includes columns for date, explanation, debit,credit
OE=$30,000 & Net income=$2,000 – At the end of the month, a funeral home's assets totaled $50,000; the liabilities totaled $20,000; revenue for the month totaled $6,000; and the total of the expenses amounted to $4,000.
Suppose country X has a Current Account that is negative. It is likely that this is from having a trade surplus. 
A discount offered by a business is a/an: – Cash Discounts
Investors – selling part of the ownership fo the company for funds (buyers)
Comapnys plan to safeguard the company's asset and improve accuracy – Internal control
Trail balance – A list of all accounts and their balances
What type of liability includes events with uncertain outcomes? – Contingent Liabilities
current ratio – current assets/ current liabilities *measures ability to pay short term debt
reliability principle – The accounting principle that ensures that accounting records and statements are based on the most reliable data available. Also called the objectivity principle.
Suppоse cоuntry X hаs а Current Accоunt thаt is negative. It is likely that this is from having a trade surplus. 
Intangible Asset – Not physical or material

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