Accounting

gross margin ratio and what it test – calculates the percentage of dollar sales available to cover expenses and provide a profit.

net sales – cost of goods sold / net sales

retained earnings – The amount of stockholders' equity that the corporation earned through profitable operation and has not given back to stockholders.
devengar intereses – to accrue interests
net income – the difference between total revenue and total expenses when total revenue is
greater
To Pay a Dividend, A company must: – – have enough retained earnings to declare the dividend
– have enough cash to pay the dividend
The board of directors has the ability to declare a dividend; becomes a liability once declared.
1) Debit retained earnings, credit dividends payable
2) Debit dividends payable, credit cash
What is an estimate of the expected productive life of an asset called? – Estimated useful life
_____ refers to an employment relationship between an employer and an employee, under which either party can terminate the relationship without notice for any reason not prohibited by law.
non current liabilities – a present obligation that has to be paid after the next 12 months
sole proprietorship – A business owned by one person.
T- Account – A summary device that is shaped like a capital T with debits posted on the left side of the vertical line and credits on the right side of the vertical line.
Financing activities – include cash inflows and outflows from the company's transactions with its owners and inflows and outflows from its borrowing activities
Asset – a future economic benefit presently controlled by an entity as a result of a past transaction.
Endorsement – Signature or stamp on the back of a check transferring ownership
_____ refers tо аn emplоyment relаtiоnship between аn employer and an employee, under which either party can terminate the relationship without notice for any reason not prohibited by law.
working capital – current assets minus current liabilities
Equation for Retained Earnings – = net income – net losses – dividends
Historical Cost Basis Principle – The principle that requires assets and services to be recorded at their cost at the time they are acquired and that, generally, long-term assets remain at historical costs in the asset accounts.
Continuity or "going concern" – Assume business will continue indefinitely

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