Chapter 1 Introduction To Accounting And Business (accounting Terms)

Trial Balance – prove that debits=credits in general ledger
Acid (quick) Ratio – (Cash – current investments – A/R)/ Current liabilities
interim financial statements – covering a shorter time period
cost of finished good available for sale – Adding the the begging finished good inventory to the cost of goods manufactured during the period
limited life – its cost is systematically allocated to expense over its estimated useful life
Asset, Balance Sheet – Type and Statement for: Prepaid Insurance Expense
adjunct account – increases either an asset, liability, or owners' equity account
FOB shipping point – Freight terms indicating that ownership of goods passes to the buyer when the public carrier accepts the goods from the seller.
The _______ process adopts an end-customer viewpoint and focuses on information sharing by manufacturer and retailer through joint planning, demand, and supply management activities.
Income summary account – temporary account used only in the closing process to which the balance of revenue and expense accounts (including any gains or losses) are transferred; its balance is transferred to the capital account (or RE account)
Balance Sheet – A financial statement that reports assets, liabilities and owner's equity on a specific date
acreedor privilegiado – secured creditor
Merchandisers – Sell a tangible good as opposed to service providers who provide a service
Ledger – A group of accounts constitutes a
The _______ prоcess аdоpts аn end-custоmer viewpoint аnd focuses on information sharing by manufacturer and retailer through joint planning, demand, and supply management activities.
Net Profit Margin – Net Income/Net Sales
Assets vs. cashflow – have an inverse relationship with cash flow because they are uses of funds
Electronic Funds Transfer (EFT) – An electronic transfer of money from one account to another.

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