Principals Of Accounting Chapter 10 Vocabulary

time ticket – when employees work on individual job.
Long Term Liabilities – probably future sacrifices of economic benefits arising from present obligations that are not payable within a year or the operating cycle of the company, whichever is longer
Cr. – The abbreviation for "credit" is
Qualified report – The auditors are not confident with the financial statement, do not show true financials of the company
Owner's equity, Net worth & Capital – Difference between the total assets & the total liabilities
Under a perpetual inventory system, when goods are purchased for resale by a company
A. purchases on account are debited to Inventory.
B. purchases on account are debited to Purchases.
C. purchase returns are debited to Purchase Returns and Allowances.
D. freight costs are debited to Freight-out. – A
sole proprietorship – work alone
Gram positive cells have an external membrane surrounding a thick layer of peptidoglycan.
cost constraint – Accounting standard-setters weigh the cost that companies will incur to provide the information against the benefit that financial statement users will gain.
Double Entry Accounting – uses 2 accounts to record a transaction. 2 columns, debits and credits.
What is the date when dividend checks are mailed to the stockholders and the payment of dividends is recorded called? – Payment date
financial accounting – provide external users w/ info., provide user w/ general purpose financial statements
Depreciation reduces the value of the business: – True
Grаm pоsitive cells hаve аn external membrane surrоunding a thick layer оf peptidoglycan.
Deduction – An amount that is subtracted from Gross Earnings.
Total Contributed Capital – Capital stock+paid in par
Bad debt expense methods – Percentage of sales method
Aging of receivables method
Balance Sheet (financial statements) – describes a company's financial position (type and amounts of assest, liabilies and equity) at a point in time.

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