Fin: Ch 1: Accounting Information For Decision Making

footnotes – additional information provided along with the four financial statements
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
account number – The number assigned to an account
financial ratios – show how the elements of financial statements relate to each other
Bank Statement – a report of deposits, withdrawals, and bank balances
Calculate "gross profit" – = Net sales – COGS
The Web sites that facilitate linking individuals with common interests like hobbies, religion, politics, or school contacts are called ____ sites.
Net income – The difference between total revenue and total expense when revenue is greater
Purpose of a business – Add value –> Make a profit
Revenue Recognition Principle – says that revenue must be recognized in the period which it is EARNED
Liabilities – Debts or obligations of a business.
note receivable – a written promise that a customer will pay a fixed amount of money and interest in the future
Ethics – The principles of right and wrong that guide individual in making decisions are called ethics
Cash flows from operating activities – Cash flows from transactions that affect the net income of the company
The Web sites thаt fаcilitаte linking individuals with cоmmоn interests like hоbbies, religion, politics, or school contacts are called ____ sites.
Non taxable – Club dues when the advantage is to the employer
list the 3 types of well-known fraud – embezzlement
bad checks
Expense – A decrease in resources resulting from the sale of goods or provision of services

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