Accounting Chapter 4 Vocabulary

Claims for future collection from customers – Accounts receivable
Bank Statement – An itemized listing of additions to and subtractions from a depositor's account
sistema integrado de jubilaciones y pensiones FIJP – pension fund system SIJP
Net loss – the difference between gross profit and expenses when expenses are larger.
purchase treasury stock – debit treasury stock, credit cash
maker-borrower – responsible for paying note on due date
flight attendant – One who serves passengers on an aeroplane.
The usual sequence of steps in the transaction recording process is: – B. Analyze, Journal, Ledger
acid-test ratio – (cash + current investments + accounts receivable)/ current liabilities
The revenue recognition principle dictates that revenue should be recognized in the accounting records – B. When it is earned
The balance-sheet approach is the least common method used by North American, European, and Japanese global organizations to compensate expatriates.
realizable value – expected proceeds from converting an asset to cash
Operating Cash Flows to Current Liabilities – (Cash Flow from Operations / Ave. Current Liabilities)
cost accounting – maliyet muhasebesi
Gross Profit Percentage and formula – Measures a company's ability to charge premium prices and produce goods and services at low cost.
Gross Profit Percentage = Gross Profit / Net sales
Securities and exchange commissions – U.S Governmental agency that oversees the U.S financial markets
Going Concern Concept – Financial reports are prepared on the assumption that the life of a business is expected to continue into the foreseeable future.
Assets – the things one owns are
The bаlаnce-sheet аpprоach is the least cоmmоn method used by North American, European, and Japanese global organizations to compensate expatriates.
Make or Buy Decision Formula – MAKE (Won't Pay if Buy)
Variable product costs (per unit) not paid
x Units to be made
= Total variable cost not paid if buy

plus fixed costs saved if buy
plus opportunity costs
= Total net cost not paid if buy

———-
BUY
Purchased price to buy per unit
x Units to be purchased
=Total cost to buy

plus fixed cost added if buy
= Total net cost to buy

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