Accounting Chapter 6

Credit – The right side of a standard account
Cost Principles – assets should be recorded at their historical cost
Other Assets – These assets are assets that doesn't fall into the category of fixed-assets and current assets.
Generally accepted accounting principles (GAAP) – Accounting guidelines, formulated by the Financial Accounting Standards Board, that govern how accounting is practiced.
service buisness – a business that performs an activity for a fee
Cash over – a petty cash on hand amount is more than a recorded amount
General Motors, 3M, Reynolds Metals – Business that provides "Manufacturing service"
The right of employees to strike in support of their bargaining demands is protected by:
Debt-to-Equity and formula – Ratio that suggests that the company relies on fund provided by creditors.

Debt-to-Equity = Total liabilities / Stockholders' Equity

factoring and discounting – a company speeds up the collection of cash on accounts and notes receivable by selling the receivables
-company receives cash less a fee discount
The right оf emplоyees tо strike in support of their bаrgаining demаnds is protected by:
Operating – Dividends received from an investment
Revenue recognition principle – The principle prescribing that revenue is recognized when earned

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