less than 12 months
assets, liabilities, stockholders equity
1. Deposits in transit
2. Outstanding Checks
4. Bank Memoranda
Increase in the owners equity resulting from business operations
previously recorded liabilities that needs to be adjusted to reflect the revenue now earned
Anything of value that is owned
Economic resources owned by the entity
Economic resources owned by a business that are expected to benefit future operations.
part fixed, part variable- has components of both has a fixed minimum charge even though you don't use it at all, variable is charge per kilowatts or energy used
Make expense accounts and contra revenues equal zero via the Income summary account. This closing entry transfers total expenses and contra revenues (debit balance accounts) to the debit side of Income summary,
Current ratio = current assets/current liabilities
financial stmt that reports assets, liabilities, and owner's equity on a specific date
involves payment of principal and interest, but it also represents a pledge of certain assets that will revert to the lender if the debt is not paid.
Raw materials that caan be physically/directly associated with the finished product during the manufacturing process
The total amount earned by all employees for a pay period
|Free Cash Flow||
Cash Provided by Operations-Capital Expenditures-Cash Dividends
|As the volume of activity increases, total variable cost will:||
The net value of an owners financial interest in a business
-Daily Activities businesses do on a daily basis.
-These activities include NET income, change in short term assets, and current liab.
- Rev. and Exp.
-Sales to Customers
A check returned to the depositor unpaid because of insufficient funds in the drawer's account; also called and NSF check.
|apply = PDOH rate x standard hrs||
the recording of debit and credit parts of a transaction
Total shares of ownership in a corporation
cash is often obtained from outside sources to start or expand a buisness. the two primary sources are
-borrowing from creditors which creates liability
----bank loan(note payable)
----debt securities(bonds payable)
----goods on credit(accounts payable)
-issuing ownership interests in the corporation to investors(selling stock to shareholders)
-includes cash to pay dividends to stockholders
|Work in Progress||
The portion of manufactured inventory that has begun the production process but is not yet complete
|What is the current ratio||
current assets/ current liability
exists when a limited resource of some type restricts the companys ability to satisfy demand
the right side of a standard account is called the
|normal operating cycle||
the period of time required to purchase goods and services and turn them back into cahs is
entries made at the end of the accounting period for the purpose of recognizing revenue and expenses that were not counted yet
reported as a selling expense in the seller's income statement
an amount earned by a corporation and not yet distributed to stockholders
|SOLE PROPRIETORSHIP DEFINED||
1. SINGLE OWNER
2. ASSUMES ALL THE RISKS
|Share of Stock||
A unit of ownership in a corporation.
|Revenue Recognition Principle||
When co. recognizes revenue, not too early or too late.
|make or buy decision||
a decision concerning whether an item should be produced internally or purchased from an outside supplier
Record for a pay period that shows the pay period dates, regular and overtime hours worked, gross pay, net pay, and deductions.
|Order of liquidity||
Listing the assets in the order in which they will turn into cash. Libilities are listed in the order in which they will be payed.
1. Cash in bank
2. A/c receivable
5. Land, veichles, funiture.. etc.
price at which a stock is bought and sold
|Examples of Current Liabilities||
Accounts Payable, S-T Notes Payable, Warranty Liabilities *, Lease Liabilities *, Wages Payable, Taxes Payable, Unearned Revenues, Any liability w/o a fixed date
|book value of accounts receivable||
the difference between the balance of Accounts Receivable and its contra accounts, Allowance for Uncollectible Accounts
|Toys "R" Us had cost of goods sold in 2004 of $7,506 million and $7,646 million in 2003. Their merchandise inventory in 2004 was $1,884 million and $2,064 million in 2003. How long were their average days to sell inventory in 2004?||
|paid-in-capital in excess of par value||
amount received from issuance of stock that is in excess of the stock's par value
|How does accounts recieveable affects assets?||
Increases them -- rev. rec. principle states that we record the revenue in the period we earn it
|What are the three types of hedges?||
Fair value hedge, Cash flow hedge, Foreign currency hedge
|IRR - Internal Rate of return method||
it finds the interest yield of the potential investment.