Chapter 1 Introduction To Accounting

Loan raised – Cash from customers
proxy ballot – a voting ballot that allows you to control what happens with the company you have stock in
bank statement – bank statement: a report of deposits, withdrawals, and bank balances sent to a depositor by a bank
Trademark – Is an exclusive legal right to use a special name, image, or slogan.
REVENUE RECOGNITION PRINCIPLE – THE BASIS FOR RECORDING REVENUES: TELLS ACCOUNTANTS WHEN TO RECORD REVENUE AND THE AMOUNT OF REVENUE TO RECORD
Depreciation Expense – Expenses
account receivalbe ledger – a subsidiary ledger containing only account for charge customers
Modern Portfolio Managers (MPM) hold a 9.5 million dollar portfolio of stocks with abeta of 1.2 measured with respect to the S&P 500 index. The current value of a futurescontract on the index is 1010. 7. The multiplier on the futures equals $250. If MPM wishesto hedge the systematic risk in its portfolio, how many contracts must it buy or sell?
Liquidity Ratios – Measure the ability of a company to pay obligations expected to become due within next year or operating cycle
Fiscal Year – A fiscal period consisting of 12 consecutive months
Mоdern Pоrtfоlio Mаnаgers (MPM) hold а 9.5 million dollar portfolio of stocks with abeta of 1.2 measured with respect to the S&P 500 index. The current value of a futurescontract on the index is 1010. 7. The multiplier on the futures equals $250. If MPM wishesto hedge the systematic risk in its portfolio, how many contracts must it buy or sell?
Balance sheet – Shows the fincial position of a company at the end of an accounting period
fundemental analysis – a method of stock analysis based on the management of the company and the past stock movements
A business reansaction that involves a a purchased ON ACCOUNT – is considered to be a credit transaction.
Current account – Bank account for efts cheque books and cards

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