Accounting 121 Flashcards

Terms Definitions
to GET something
a group of accounts
Return On Sales
Net Income/ Sales
Recognizing expense by systematically assigning the cost of an asset to periods of use
Financial Activities
(balance sheet)...obtaining adequate funds or capital to begin operations and to continue operating
what is ISAB
International acounting Standards Board
An information system for the meausrement and reporting of the transformation of resources into goods and services and the sale or transfer of theses goods
mixed, variable, or fixed cost? shipping costs
Long Term Investments
These are generally:
1.     Investments in stocks and bonds of other corporations that are held for more than one year
2.     Long-term assets such as land or buildings that a company is not currently using in its operating activities. 
If Overhead was Overapplied
Account title
the name given to an account
accounting equation
An equation showing the relationship among assets, liabilities, and owner's equity(assets=liabilities+ owner's equity)
Process Costing System
Unit Product Cost=Total manufacturing cost/total units produced
Price-earning ratio
The relationship between the market value per share and earnings per share of a stock
Blank Endorsement
an endorsement consisting only of endorsers signature.
Schedule of Accounts Receivable
Amount due from customers
The primary source of revenues for merchandising companies is the sale of merchandise. 
Operating Activities
Activities undertaken by management in the course of running the business.
Merchandizing Business
a business that purchases and sells goods
service business
a business that performs an activity for a fee
gross margin
the difference between net sales and cost of goods sold
The business is assumed to be separate from the owner and other businesses, and its records should be kept on that basis
Financial rights to the assets of a business.
Balance Sheet
reports the financial condition at a point in time, in contrast to income, RE and SCF. Assets, equity and liabilities.
differential analysis
the area of accounting concerned with the effect of alternate courses of action on revenues and costs
Using various ratios to assess a company's operation.
Ratio Analysis
Units of Activity Depreciation
(Cost - Salvage)/Life in Units
assets that are ready for sale, being produced for sale or ready for use in a production process
a business form ordering a bank to pay cash from a bank account
CFO (Chief Accountant)
Responsible for the supervision of the accounting department, preparation of reports, and interpreting of information to line managers
A form on which a brief message is written describing a transaction
Terms of Sale
An agreement between a buyer and seller about payment for merchandise.
Correcting entry
a journal entry made to correct an error in the ledger
Accrual Based Accounting
With the accrual method, you record income when the sale occurs, not necessarily when you receive payment. You record an expense when you receive goods or services, even though you may not pay for them until later.
foreign currency transactions
transaction that are denominated in a currency other than the company's functional currency
Special amount column
A journal amount column headed with an account title
Discount on Bonds Payable
Company issues bonds with a contract rate less than the market rate
Financing activities. 
what is listed under FA on SCF
involve obtaining funds to begin and operate a business. Cash receipts from financing activities including debt such as issuing stock, borrowing money, bonds.
(Dividends paid to stockholders), (Repurchase of stock) (bond redemptions) (treasury stock) 
jointly controlled operations
each venture uses its own assts and other resources for a specific project, rather than establishing a separate entitiy from ventures
Allowance of Doubtful Accounts
An account in which is recorded the decrease in value of accounts receivable due to possible uncollectible items
What is stockholders equity? what shows up on BS?
The right's of stockholders. Capital stock, retained earnings.
Dividend Dates: Date of Payment
The liability is resolved as cash leaves the company to pay off the dividend
Defined benefit plan reporting requirements:
1.Stmt of plan net assets 2.Stmt of changes in plan net assets 3. Schedule of funding progress 4. Schedule of employer contributions 5. disclosures
At the end of the year, a company makes a journal entry to accrue the interest expense on a short-term note payable. As a result of this transaction current liabilities:
A) increase and current assets decrease.
B) increase and equity increases.
C) increa
C) increase and equity decreases
What is a way to show attributes without using bubble symbols?
by creating a seperate table that lists the attributes for each entity. This table is a list of attributes thats part of the E-R diagram.
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