Uil Accounting

financial information – tells investors (owners) and creditors (lenders) how the business has performed and helps them determine potential future performance, used to make decisions on what to do with excess money
capitalized – depletes over time
Outstanding Stock – Stock that is held by investors
intangible assets – lack physical substance and are not financial instruments (patents, copyrights, franchises, goodwill, trademarks, trade names, and customer lists)
Balance sheet – A financial statement that reports assets, liabilities, and owner's equity on a specific date
prepaid expenses – items such as supplies that will be used in the business the future
Step 3 – Step of Closing Process: Close Income Summary, which now reflects the net income or loss for the period, to owner's capital.
If a genetic device functions in one strain of E. coli, it will also function in a different strain of E. coli
Three Categories of Expenses – Finance Costs
*service business* – A business providing services rather than products to customers.
Merchandise – Goods that a business purchases to sell
What is Accounting? – -keeping financial records
-organizing financial information
-language of business
-analyzing and interpreting an organization's financial performance
-information required by owners, managers, investors, lenders, and the government
Expenses – Equity
Present or future payments of cash that are incurred to help the company earn revenue
If а genetic device functiоns in оne strаin оf E. coli, it will аlso function in a different strain of E. coli
Long-Term Liability – An obligation that will not be satisfied within one year. May include bonds, leases, deferred taxes, pensions, and mortgages.
Acid test ratio – Cash + current investment + accounts receivable / current liabilities
Owner's Equity – The owner's investment in the business (this can be include cash or other assets such as machinery or vehicles that the owner has contributed to the business); the business owes the owner's equity to the owner if the business if the business ceases to exist.
Budget Period – The intervals of time (usually 12 months) into which a project period is divided for budgetary and funding purposes.

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