| Terms |
Definitions |
|
10
|
.463
|
|
Amortization of goodwill?
|
$0.
|
|
Utilities expense...
|
Expense, Income Statement
|
|
Accounts and notes Receivable
|
Balance Sheet
|
|
Current Ratio
|
Current Assets/ current liabilities
|
|
Double-Entry
|
basic accounting theory is based on
|
|
account balance
|
the amount in an account
|
|
accounting
|
an information and measurement system that identifies, records, and communicates relevant, reliable, and comparable information about an organization's business activities
|
|
Materiality
|
The constraint of determining whether an iterm is large enough to likely influence the decision of an investor or creditor. GAAP may not be strictly applied to immaterial items
|
|
Times Interest Earned
|
(Net Income+Interest Expense+Tax Expense)/Interest Expense
|
|
The Time-Period Concept
|
Requires that accounting information be reported at regular intervals. Accounts are updated at the end of each accounting period
|
|
Sales Discount
|
Cash discount offered by the seller
|
|
accounting equation
|
An equation showing the relationship among assets, liabilities, and owner's equity
|
|
CGM
|
Total Man costs
+ Beg wip
- ending inventory
---------------------
CGM
|
|
Source Document
|
a business paper from which information is obtained for a journal entry
|
|
estimated manufacturing overhead
|
Budgeted manufacturing overhead costs that are used to establish the predetermined overhead rate.
|
|
capital expenditure
|
Expenditure that increases an asset's capacity or efficiency or extends its useful life. Capital expenditures are debited to an asset account
|
|
Does Decreasing Liability INcrease Owner's Equity?
|
NO!!! no effect
|
|
Calculating Loan Payments
|
Periodic Payment (annuity)= Amount Borrowed (PV) / PV of Annuity Factor based on interest rate and life of loan
|
|
Journal
|
Book in which the first formal double entry record of transactions is made; the Book of original entry
|
|
Special Sales Agreements
|
Buyback, high rates of return, installment sales
|
|
Current Liabilities
|
Liabilities due within a short time, usually within a year
|
|
Unearned Revenues
|
Revenues received in cash and recorded as liabilities before a company earns
|
|
employees
|
who are the beneficiaries of a defined contribution trust?
|
|
Contra Account
|
An account that reduces a related account on a financial statement
|
|
Revenue Recognition Principle
|
The principle that companies recognize revenue in the accounting period in which it was earned
|
|
Managing working ____ is managing _____
|
capital
Liquidity or cash
|
|
zero defects under JIT
|
the companies suppliers are responsible for the quality of incoming parts and for spotting defective units
|
|
Loss
|
a decrease in net worth due to excess of costs and expenses over income is
|
|
accounting period
|
The period of time convered by and accounting report.
|
|
Breakeven point in units
|
(Total fixed costs) / (Contribution margin per unit)
|
|
gross profit
|
or gross margin, equals the net sales less the cost of goods sold
|
|
Dishonored Check
|
a check that a bank refuses to pay
|
|
accrued expense
|
expenses that have not yet been paid that the company owes. It also includes many small amounts that are reported in one line item on the balance sheet.
|
|
Term
|
the length of time the borrower has to repay the note
|
|
Intangible assets
|
long lived assets that do not have physical substance yet oftn are very valuable. Ex: goodwill, patents, copyrights, and trademarks.
|
|
Employee Earnings Record
|
a business form used to record details affecting payments made to an employee
|
|
petty cash fund
|
Cash kept on hand for making small, incidental cash payments
|
|
Merchandiser COGS
|
(Beg Merch Inv) + (COG PURCH.) - (End Merch. Inv)
|
|
KK Company bought a delivery truck for $62,000 on January 1, 2009. They installed a rear hydraulic lift for $8,000 and paid sales tax of $3,000. In addition, KK paid $2,400 for a one-year insurance policy and $500 for registration fees. They estimate the
|
$6,500 and $60,000
|
|
Lump-sum Note
|
One repayment at the end of the life of the note, payment includes return of principal and interest
|
|
If the credit to record the purchase of supplies on account is not posted
|
Liabilities will be understated
|
|
How do you compute Ending Inventory?
|
COGAS - COGS = Ending Inventory
|
|
which of the following inventory valuation methods is only an estimate of actual costs
|
both retail and gross profit methods are only estimations
|
|
On Feb. 10 your company sold merchandies to a customer for $600 on account. When the customer pays for the merchandise on Feb. 28, your company should?
|
Increase cash $600 and decrease accounts receivable $600.
|
|
HOW DOES LIFO TO AFFECT EARNINGS
|
normally makes it easier for a company to manage reported earnings than the use of FIFO or Average Cost.
*Now, LIFO is most popular
|
|
When a company issues a bond at a discount
|
the bond interest rate is less than the market interest rate
|
