Accounting I Midterm 2015

quick or acid-test ratio – measures immediate short-term liquidity
intangible assets – *patents
*copyrights
*franchise
*trademarks
*goodwill
Price – Earnings Ratio – (market price per share / annual earnings)realtionship between a firms financial performance and the firms stock price
Market planning – understanding concepts and strategies to develop and target marketing strategies to a specific group
Personal net worth – The difference between personal assets and personal liabilities
Owner's equity = $30,000, net income = $2,000 – at the end of the month, a funeral home's assets totaled $50,000; the liabilities totaled $20,000; revenue for the month totaled $6,000; and the total of the expenses amounted to $4,000.
Account Period Concept – Requiers that revenues and expenses be reported in the proper period
Mixed costs (VC) – TC= FC + VC (Activity goes up, MC increases; MC/unit decreases)
If you were not studying economics, you could be doing one of the following: sleeping in (which you value at $5.00), playing cards with your friends (which you value at $10.00), or working (you would have earned an extra $8.00). The opportunity cost of studying economics is therefore:
Deferred income – income received but not yet earned is
Due Process – A process that enables all interested parties to comment on proposed accounting standards before they are standardised by the standard setter
If yоu were nоt studying ecоnomics, you could be doing one of the following: sleeping in (which you vаlue аt $5.00), plаying cards with your friends (which you value at $10.00), or working (you would have earned an extra $8.00). The opportunity cost of studying economics is therefore:
IFRS – (International Financial Reporting Standards)= makes sure that companies are following the GAAP and FASB and IASB are followed.

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