Managerial Accounting: Chapter Three: Joborder Costing

Internal users – Individuals inside a company who plan organize and run the business. Ex : managers, directors, company officers, supervisors, human resources
Expenses – Resource outflows that decrease retained earnings
Any business activity that changes assets, liabilites, or owner's equity – Transaction
Natural Resources – Assets physically consumed when used. Examples are timber, mineral deposits, and oil.
A check that has been issued but not presented for payment to a bank is called a – Outstanding check
Accrual Accounting (revenue) – When its earned , at the point of sale of services
Current Liabilities – liabilities due within a short time, usually within a year
Chyme is:
Accounts Receivable – Those who owe the business money (Debtors)
Prepaid Expense – A payment of an expense in advance.
Lower of cost or market – A basis whereby inventory is stated at the lower of either its cost or its market value as determined by current replacement cost.
going-concern – business continuous indefinitely until concern
7 – What step in the accounting process is Prepare financial statements?
Journal – a form for recording transactions in chronological order
Lower cost market rule – LCM
Is to record inventory at the lowest value
Chyme is:
utilities payable – current liab
"Operating Section" – section of statement of cash flows

how much cash was generated from day to day operations

Inventory Turnover – Determined by dividing the cost of goods by the average inventory
Expense Recognition / Matching principle – Expenses incurred by the business should be included regardless of when money is paid for them
Sales Discount – A cash discount offered by the supplier for payment within a specified period.

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