Accounting Chapter 4 Vocabulary

Net Income and Equity – correlate in direction
Cost-Reimbursement – Type of contract/grant for which the sponsor pays for the full costs incurred in the conduct of the work up to an agreed-upon amount.
expense – maintains the expected useful life or productivity of the asset
Liablities – Balance Sheet
classified as current or long-term
Reasons for issuing preferred stock – To raise capital without sacrificing control, boost the return earned by common stockholders through financial leverage
#17. Total current assets at January 1 amount to: – cash + accts receivable + inventory = $180,000
Prepaid Expenses – Expense items acquired, recorded, and paid for in advance of their use.
rate of return on assets – measures overall profitability of assets
Data entry (recording) – the committing of a business transaction and the events surrounding such into writing.
Which of the following statements below shows the contrast between data and information?
Cash Conversion Cycle – Days Sales in Inventory+Days Sales Outstanding-Days Payable Outstanding=Operating Cycle -Days Payable
capital expenditure – additions & improvement – asset account
cash
credit – An amount recorded on the right side
proving cash – determining that the amount of cash agrees with the balance of the cash account accounting records.
Which оf the fоllоwing stаtements below shows the contrаst between dаta and information?
Statement of OE – Beginning and ending capital and drawing account

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