Principals Of Accounting Chapter 10 Vocabulary

Purchases discount – a cash discount on purchases taken by a customer
Partnership – A type of business considered to exist when there is co-ownership of a business activity carried on with the objective of making a profit.
Which type of stock is required by the corporation to be held for future use? – Treasury Stock
FOB shipping point – buyer becomes owner when item is shipped
revenue recognition principle – Accounting principle that revenue should be recognized int he accounting period in which it is earned (generally at the point of sale)
Conceptual Framework – A basic framework developed by the FASB to provide conceptual guidelines for financial accounting and statements; the most important topics are explanations of qualitative features of financial statements, basic assumptions underlying statements, basic accounting principles, and modifying constraints.
William has a cut that is superficial, painful but not bleeding. Based on this information you would predict that the cut has penetrated to ________.
withdrawals – Assets taken out of a business for the owner's personal use
analyzing – looking at the events that have taken place and thinking about how they affect the business
Accrued Revenues – Revenues earned but not yet received in cash or recorded.
Liquidity – ability to PAY upcoming obligations. order by which is expected to be turned into cash first.
Transaction – A business activity that changes assets, liabilities, or owners equity
Williаm hаs а cut that is superficial, painful but nоt bleeding. Based оn this infоrmation you would predict that the cut has penetrated to ________.
missionary – One who is sent on a religious mission.
Net Income as Percentage of Sales – (Net Income)/(Net Sales)
*How much of every dollar goes to shareholders
weaver – A person who's job is weaving cloth.

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