Learn Accounting Basics 1

slide error – error that occurs when a decimal point is moved by mistake
What is the accounting equation? – Assets = Owner's equity + Liabilities
the term that describes the replacement of cash in the petty cash fund – replenish
footing – The total of the debit column or credit column of an account.
debt to assets ratio – a measure of solvency calculated as total liabilities divided by total assets. It measures the percentage of total financing provided by creditors
Public accounting – The segment of the accounting profession that relates to providing audit, tax, and consulting services to clients.
Owner's Equity – The financial interest of the owner of a business; also called proprietorship or net worth.
Payroll – The total amount earned by all employees for a paid period
_____ cables are glass tubes surrounded by concentric layers of glass, called “cladding,” to form a light path through wire cables.
FOB destination – Freight Costs paid by Seller
Buyer assumes ownership of inventory when it reaches his/her place of business
Seller has risk of loss
Cost of shipping is included in Freight Expense
Revenue – The gross inflows of economic benefits during the period
Tax accounting pp 6 – The preparation of income tax returns is a specialized field within accounting. To a great extent, tax returns are baed on financial accounting information. However, the information often is adjusted or reorganized to conform with income tax reporting requirements.
_____ cаbles аre glаss tubes surrоunded by cоncentric layers оf glass, called “cladding,” to form a light path through wire cables.
Current Assets – cash and other assets expected to be exchanged for cash or consumed within a year
petty cash slip – a form show showing proof of a petty cash payment
Liability – Amount owed by a business
contributed capital – Refers to the amount that stockholders invest in the company–included under the title common stock
net income (Net profit) – excess of total revenues over total expenses.

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