Principals Of Accounting Chapter 10 Vocabulary

Credit side – the right side of a standard account is called the
GAAP – Stands for: Generally Accepted Accounting Principles

It is a series of conventions, rules and procedures that companies have to follow.

Consolidated Financial Statements – Financial statements that show the combined results of a "Parent" company and all the "subsidiary" companies in which the parent has controlling interest
liabilities – Claim against asset debts owed to other example accounts payable loans payable
An ideal database should consist of data that could be used for a single purpose only. – False
Amounts of Return / Amount of Investment – = Rate of return
Hourly Rate Basis – A method of paying employees according to a stated rate per hour.
Managerial – Reports for internal users
A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table:       Budgeted Activity Activity Cost Pool Budgeted Cost Product A Product B Product C Activity 1 $ 70,000   6,000   9,000   20,000   Activity 2 $ 45,000   7,000   15,000   8,000   Activity 3 $ 82,000   2,500   1,000   1,625      How much overhead will be assigned to Product B using activity-based costing?
Earnings per share – a financial ratio calculated by dividing net income after taxes by the number of shares of common stock outstanding
49. Nina Corp. had the following net income (loss) the first three years of operation: $7,100, ($1,600), and $3,600. If the Retained Earnings balance at the end of year three is $1,100, what was the total amount of dividends paid over these three years?
A. $500.
B. $0.
C. $9,100.
D. $8,000. – D. $8,000.
General Journal – Used when a transactions can't be classified in 1 of the 4 special journals
operating cycle for a merchandiser – 1. cash purchases
2. merchandise inventory
3. credit sales
4. accounts receivable
5. cash collection
dishonored checks – A check that a bank refuses to pay
The right side of an account is referred to as the: – D. Credit side
A cоmpаny uses аctivity-bаsed cоsting tо determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table:       Budgeted Activity Activity Cost Pool Budgeted Cost Product A Product B Product C Activity 1 $ 70,000   6,000   9,000   20,000   Activity 2 $ 45,000   7,000   15,000   8,000   Activity 3 $ 82,000   2,500   1,000   1,625      How much overhead will be assigned to Product B using activity-based costing?
How can we reduce intangibles over time? – amortization or impairments
Contra Revenue Account – An account that is offset against a revenue account on the income statement.
stakeholders: any persons or groups who will be affected by an action – stakeholders: any persons or groups who will be affected by an action
Orders – A request for the future delivery of a product.
SALES DISCOUNT – REDUCTION IN THE AMOUNT OF CASH RECEIVED FROM A CUSTOMER FOR EARLY PAYMENT. OFFERED BY THE SELLER AS AN INCENTIVE FOR THE PURCHASERS TO PAY EARLY.

A CONTRA ACCOUNT TO SALES REVENUE.

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply