Accounting: Chapter 6 Vocab

Property – Unless otherwise stated, real property, equipment, intangible property and debt instruments.
Continuity Assumption – Unless there is evidence to the contrary, the accountant assumes that the business will continue to operate indefinitely.
Merchandise/Inventory. – Goods purchased for resale at a profit.
Retained Profit – Profits made by businesses are owed back to the owner
Schedule of Accounts Receivable – A listing of customer accounts, account balances, and total amount due from all customers
cost constraint – constraint that weights the cost that companies will incur to provide the information against the benefit that financial statement users will gain from having the information available
Workers' Compensation Insurance – Insurance that protects employees against losses from job-related injuries or illnesses, or compensates their families if death occurs in the course of the employment.
Sales discount – A cash discount on sales taken by customer.
Proving the ledger – adding all debit balances and all credit balances of ledger accounts and then comparing the two totals to see whether they are equal.
manufacturing business – make the goods that they sell to their customers
Unfortunately, noise itself occurs as a(n) ____ waveform, and this makes it challenging, if not extremely difficult, to separate noise from an analog waveform that represents data.
Statement of cash flows—identifies cash inflows (receipts) and cash outflows (payments) over a period of time. – d.
Note receivable – A written promis of a customer to pay the business a sum of money at a future date is called a
Securities and Exchange Commission (SEC) – An agency of the U.S. government that has authority over the accounting and financial disclosures for companies whose shares of ownership (stock) are traded and sold to the public.
Unfоrtunаtely, nоise itself оccurs аs а(n) ____ waveform, and this makes it challenging, if not extremely difficult, to separate noise from an analog waveform that represents data.
Used to compare company records and bank statement – bank reconciliation
dentist – one who attends to people's teeth

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