Accounting Chapter 5

general bookkeeper – calculate wages and prepares checks for the payment of those wages.
rate of return on assets – measures overall profitability of assets
limit order to sell – an order to sell stocks only if the can be sold at a certain price
expenses – the cost of assets consumed or services used in the process of generating revenues
Journalizing. – The process of recording business transactions in a journal.
allowance method of recording losses from uncollectible accounts – Crediting the estimated value of incollectible accounts to a contra accounts
U.S. antitrust law may protect foreign consumers and competitors from violations by U.S. firms.
Cash is the asset that is most vulnerable to – fraud and theft
natural year – a business's fiscal year that ends at the same time as a slow seasonal period begins
Liabilities – creditors claims against resources, things we owe
operating profit & loss – üzemi tevékenység eredménye
U.S. аntitrust lаw mаy prоtect fоreign cоnsumers and competitors from violations by U.S. firms.
Un-liquidated obligations – For financial reports prepared on a cash basis this is the amount of obligations incurred by the recipient that have not been paid. For reports prepared on an accrued expenditure basis, they represent the amount of obligations incurred by the recipient for which an outlay has not been recorded.
The percentage-of-receivables basis of estimating uncollectibles
A. produces a better estimate of cash realizable value.
B. results in a better matching of expenses with revenues.
C. emphasizes income statement relationships.
D. ignores the existing balance in Allowance for Doubtful Accounts. – A
Corporation – Business unit chartered by the state and legally separate from its owners.
double entry accounting – debits on the left and credits on the right.
Merchandising Business – A business that purchases and sells goods

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