Expenses and withdrawals of assets from the business by the owner – the proprietorship of a business may be decreased by
inventory turnover – a ratio that indicates the liquidity of inventory by measuring the number of times average inventory sold during the period; computed by dividing cost of goods sold by the average inventory during the period
three things accounts do – determine economic transaction, identify accounts affected, journalize transactions
How does the matching expenses and revenue concept rate to adjustments ? – An adjustment is what ensures the concept of matching expense with revenue
The normal balance of the Dividends account is a _______ because it decreases _______. – debit stockholders' equity
Profit margin – Measures the percentage of each dollar of sales that results in net income. Net income/net sales
GAAP – The set of rules that all accountants use to prepare financial reports.
stakeholders: any persons or groups who will be affected by an action – stakeholders: any persons or groups who will be affected by an action
Unsecured Bonds – Bonds that are not supported by specific assets pledged as collateral
Financial Statements – Reports that summarize the financial condition and operations of a business.
A group that is created to do something productive for the organization and is headed by a leader is called a(n) _____.
Checking Account – payments can be refereed by a depositor
nonvalue-added activities – all activities other than those that are
absolutely essential to remain in business.
historical cost principle – assets are recorded and reported at original purchase price
Non-current assets – Assets that will remain with the business for a long period of time
honorarios y retribuciones por servicios – fees and compensation for services
Units of use method – HC-RV/EUL x use
Market Capitalization – =share price*shares outstanding
A grоup thаt is creаted tо dо something productive for the orgаnization and is headed by a leader is called a(n) _____.
Account Receivable – sales of goods and services
interests – financial costs / income, expenses

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