Ch 4 Completing The Accounting Cycle

opportunity cost – the potential benefit that is gen up when one alternative is selected over another.
unpacking – تفريغ أو الفتح
comparability – összevethetőség
Average Collection Period Ratio – 365/receivables turnover *shows how often collected
JJ White planned to use $82 of material per unit but actually used $80 of material per unit, and planned to make 1,200 units but actually made 1,000 units.

The sales-volume variance is:
a. $2,000 favorable
b. $14,000 unfavorable
c. $16,400 unfavorable
d. $2,400 favorable – c. $16,400 unfavorable

SEC – oversees the financial markets in america and have legal authority to establish accounting standards but delegate authority to the FASB
Under federal law, only key employees who take temporary family or medical leave are entitled to job reinstatement.
How much would that be cost? – Was würde das kosten?
Chart of Accounts – List of accounts used by a business
worksheet – a columnar accounting form used to summarize the general ledger information
needed to prepare financial statements
Straight-line depreciation method – Method that allocates an equal portion of the depreciable cost of plant asset (cost minus salvage) to each accounting period in its useful life
Adjusting Entry – Recognizes portion earned as revenue and reduces the balance of a liability account. Done so that the financial statements reflect the revenues that have been earned and the expenses that were incurred. Involves one income statement account and one balance sheet account. (The purpose of each adjusting entry is to get both the income statement and the balance sheet to be accurate.)
balance de sumas y saldos – trial balance
Note payable – Note signed promising to repay amount borrowed and interest
Under federаl lаw, оnly key emplоyees whо tаke temporary family or medical leave are entitled to job reinstatement.
vertical analysis – comparing each item in financial statement w/ total amount from same statement
What does the SOX do? – curbs financial abuses at companies that issue their stock to the public
Margin of Safety (in dollars) – current level of sales-break-even sales

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