# Financial Accounting Ch 8

What is in a statement of owners equity – capital beginning of month, plus investments, net income, less withdrawals ,capital at end of month
Sale on account – a sale for which cash will be received at a later date
Current Liabilities – Liabilities due within a short time, usually within a year
Allowance Method – Bases bad debt expenses on an estimate of uncollectible accounts.
accounting equation – Assets = Liabilities + Equity
Liquidity – Working capital is a measure of
consistency – A concept that relates performance assessments over time.
The heights (in centimeters) and arm spans spans (in centimeters) of 31 students were measured. The association between x (height) and y (arm span) is shown in the scatterplot below. The equation of the least-squares regression line for this association is also given.   estimated armspan = 4.5 + 0.977(height) a. Jane is 160 cm tall.  Use the given line of best fit to predict her arm span.   b. Doug is 205 cm tall. Would you use this least-squares regression line to predict his arm span? Explain.
Negotiable – A financial instrument whose ownership can be transferred to another person or business.
Perpetual inventory – A merchandise inventory determined by keeping a continuous record of increases, decreases, and balance on hand