Financial Accounting

Corporation – an organization with the legal rights of a person and may be owned by many persons
accounts payable ledger – a subsidiary ledger containing only accounts for vendors from whom item are purchased or bought on account
days in inventory – 365 / inventory ratio
Owner invested cash in business – Cash (i.e. J.R. Doe, Capital)
Class: Assets and Owner Equity.[both] increase.
Debit and Credit
Financial Statement: Balance Sheet and Statement of Owner's Equity.
Explain how the inventory turnover ratio and the days' sales in inventory ratio are used to evaluate inventory management (see page 223) – f.
Ethics – The principals of right and wrong that guide an individual in making decisions
Net Loss – revenue is less than expenses
Material requirements planning emerged in the 1970s as an alternative to pull-style inventory management.
interest – economic benefit earned by the payee for loaning the principal to the maker
reliability principle – The accounting principle that ensures that accounting records and statements are based on the most reliable data available. Also called the objectivity principle.
chart of accounts – a list of all accounts used by a business
Mаteriаl requirements plаnning emerged in the 1970s as an alternative tо pull-style inventоry management.
Monetary Unit Principle – dollars, euros, rubies

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