Posting – Transferring information from a journal entry to a ledger account.
Closing entries – Entries made at the end of an accounting period to transfer the balances of temporary accounts to a permanent stockholders' equity account, Retained Earnings
Audit Report – a report from a clearinghouse that lists errors to be corrected before a claim can be submitted to the payer
The debit side of the T-account is the – Left side
Debt Guarantees – The Guarantor usually discloses the guarantee in its financial statement notes.
What is the equation for calculating closing net worth for a period? – Closing Net Worth = Opening Net Worth + Surplus (or) deficit
Shareholders – Owners of a corporation; also called stockholders. (p.11)
Ratio analysis – involves the comparison of two amounts on a financial statement and the evaluation of the relationship between these amounts.
Period reporting – The life of the business can be divided into even time periods so that performance can be measured
Utilization ratios or operating efficiency ratios. A measure of how efficiently the firm is managing its assets – Activity Ratios
The Savvy Entrepreneurial Firm feature in Chapter 1 focuses on Pandora, the Internet streaming music company. The feature's main purpose is to illustrate the importance of ________ as a key characteristic of the founders and employees of entrepreneurial firms.
Transaction – An event that can change the status of the financial position of the business
Petty Cash – An amount of cash kept on hand and used for making small payments.
Net Income – net earnings, profit, selling more than the cost of producing (revenue – expenses, the bottom line), the excess of total revenues over total expenses
The Sаvvy Entrepreneuriаl Firm feаture in Chapter 1 fоcuses оn Pandоra, the Internet streaming music company. The feature's main purpose is to illustrate the importance of ________ as a key characteristic of the founders and employees of entrepreneurial firms.
accounting cycle: the series of accounting activities included in recording financial information for a fiscal period – accounting cycle: the series of accounting activities included in recording financial information for a fiscal period