Basic Accounting Terms

Liquidity – The ability to have enough cash to pay debts when they are due.
$2,000 – A plant asset was purchased by the funeral home costing $8,000. It has a useful life of 3 years & a salvage value of $2,000. Using the straight-line method of depreciation, what would be the yearly amont of depreciation
créditos sin plazo – receivables without any established term
Depreciation Expense – the periodic expense created by allocating the cost of plant and equipment to the periods in which the are used
Publicly Held Corporation – A corporation whose stock is widely held, has a large market, and is usually traded on a stock exchange.
Representational expenses – Представительские расходы
Special Orders – A one-time order that is not considered part of normal business with a customer is a special order. The special order is usually for a reduced sales price.
Special orders do not change unavoidable fixed overhead costs.
Special orders reduce other sales if production is already at capacity.
MULTI-STEP INCOME STATEMENT – FORMAT THAT CONTAINS SUBTOTALS TO HIGHLIGHT SIGNIFICANT RELATIONSHIPS. IN ADDITION TO NET INCOME, IT REPORTS GROSS PROFIT AND OPERATING INCOME
Which of the following generalizations does NOT describe the cerebral cortex?
period costs – consists of selling and administrative expense.
Capital Account – An account used to summarize the owner's equity in a buisness
financial statements – financial reports that summarize the effects of events on a business
Understandability – The ability of accounting information to "be comprehensible to those who have a reasonable understanding of business… and are willing to study the information with reasonable diligence"
Which оf the fоllоwing generаlizаtions does NOT describe the cerebrаl cortex?
Income Statement – Reports:
1. The value of goods or services provided to customers during a period of time.
2. The cost of providing goods or services to customers during a period of time
3. Net earnings for a specific period of time

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