Financial Accounting Ratios

managerial accounting – accounting used only by the business that you are creating it for, internal accounting system, not required by law
Most common external users – Investors and creditors
Long-Term Liabilities – Are all the entity's obligations not classified s current liabilities.
Substantive Attention of Attorney – Not preliminary or passing advice
Not based on hypothetical facts
No duty to investigate
Not in another role or context
geologist – One who studies the matter that makes up the Earth.
Written off – When an account is determined to be collectible
Transferred-out costs are incurred in previous departments that are carried forward as the product's cost as it moves to a subsequent process in the production cycle. – True
Source Document – Proof that a transaction occurred
Catalog of Federal Domestic Assistance – CFDA – A database which helps the federal government track all programs it has domestically funded.
Inventory Turnover Ratio – measures average number of times that inventory is sold and restocked during this year
Organizations that are in the embryonic stage are characterized by all of the following EXCEPT:
account – A comprehensive system for collecting, analyzing, and communicating financial information
Purchases Journal – A special journal used to record only purchases of merchandise on account.
accounts payable – current liability, BS, credit
Accounts Payable – Amounts a business must pay in the future.
Salary – The money paid for employee services.
Unrealised gain – A gain yet to be realised from a transaction
Orgаnizаtiоns thаt are in the embryоnic stage are characterized by all оf the following EXCEPT:
Net loss – occurs when expenses exceed revenue which decreases equity
Accounting – planning, analyzing, interpreting, and recording financial information (PAIR)
Long-run planning and short-run planning are best performed independently of each other. – False
intangible assets – lack physical substance and are not financial instruments (patents, copyrights, franchises, goodwill, trademarks, trade names, and customer lists)

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