Terms Flashcards

Terms Definitions
final processing
FF Assets=
Liab. (Agency funds)
The abbreviation for "debit" is
No amortization
of discount premium allowed
Profit margin
contribution margin - allocated capacity costs
Amount recorded on the left side
the debts owed by a business
High-low method Step 3
Formulate cost function
y=total mixed cost or total costa=total fixed cost (vertical intercept of line)b=variable cost per unit (slope of the line)x=level of activity
present obligations of the business as a result of past events which are expected to result in an outflow of resources
operating expenses/overhead
expenses incurred in the normal operation of a business
Same as realized, the act of paying
the difference between the price a seller recieves for goods and the totla cost oto the seller of all resources consumed in developing, producing, and selling those goods during a particular period of time
source document
a business paper from which information is obtained by a journal entry
A form describing the goods or services sold, the quantity, and the price
Classified Balance Sheet: Liabilities and SE
-current liabilities
-long-term liabilities
debt to total assets ratio
total liabilities/total assets
An income statement is an itemized statement that provides information regarding the status of the assets, liabilities, and owner's equity of a business enterprise as of a specified date.
Profit center
The manager has control over both costs and revenue
Variable Cost
changes in total in direct proportion to a change in the activity level. (ex. long distance bill)
cost accounting systems
used when the product being manufactured are all alike, no difference between the products
degree to which we can directly relate a cost or revenue to a decision option
Owners' equity
represents the owners' claims on the assets of the business. Arithmetically, it is the difference between assets and liabilities.
Variable Costs
costs that change according to the level of production.
debit card
a bank card that automatically deducts the amount of a purchase from the checking account of the cardholder
Trade Discount
A reduction from list or catalogue prices given by wholesalers and manufacturers
Usually 30 percent or more
Example: An article is listed at $1,000 with a trade discount of 40 percent Sale price = $1,000(1.00 – 0.40) = $600
income statement
An accounting of income and expenses that indicates a firm039;s net profit or loss over a certain period of time, usually one year.
chart of accounts
A list of accounts used by business
business ethnics
The use of ethnics in making business decisions.
Payroll taxes
taxes based on the payroll of a business
dishonored check
a check that a bank refuses to pay
Schedule of Accounts Receivable
A listing of customer accounts, account balances, and total amount due from all customers
Wholesale Merchandising Business
A business that buys and resells merchandise to retail merchandising businesses
retained earnings statement
summary of the changes in the earnings retained in the corporation for a specific period of time
Issued Shares
Total number of shares that have been issued
market based transfer prices
transfer price is based on the external price. Works well when seller is AT capacity
activity base (driver)
an activity that causes a cost to change
par value stock
capital stock that has been assigned a value per share in the corporate charter
goodwill cost
teh excess of the purchase price of a business over the fair market value of the business assets and liabilites, the only way to report goodwill as an asset it to purchase another business.
all cash received and spent
goes on teh statement of cash flows
A list of the workers to be paid by a company, and the amount that each one is to be paid.
What are decisions where there are resource constraints?
E.G where an organisation experiences a shortage of physical resources such as raw materials or specialist staff and therefore cannot accept all potentially desirable opportunities. Such decisions require a priority ranking system.
Name 4 significant Non-cash activities not mentioned in the main portion of the Statement of Cash flows.
1. Issuance of common stock to purchase assets.
2. Conversion of bonds into common stock.
3. Issuance of debt to purchase assets.
4. Exchanges of plant assets.
What does a balance sheet focus on?
financial picture as of a given day
What is a Capitalized Lease Asset and What is it used for?
it is a Line Item on the Balance Sheet.

(1) 1/2 of the way a Capital Lease is accounted for on the Balance Sheet

(2) normally depreciated over the life of the capital lease (on a straight-line basis), down to the guaranteed residual value, with a corresponding equal annual depreciation expense
Intangible Assets
+ Operating
Depr. of Equipment
cost flow assumptions
revenue, Expense, Withdrawal
3 temporary accounts
____ used to generate earnings
Income is increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from the owner.
actual cost
a cost that has occurred
Profit Margin Ratio
= Net Income/Net Sales
a record summarizing all the information pertaining to a single item in the accounting equation
corridor method
net cummulative unrecognized actuarila gains and losses at the beginning of the reporting period are compared with the defined benefit obligation and the fair value of plan assets at the beginning of the period. If the cummulative amount of unrecognized actuarial gains and losses is more than 10% of DBO or FVPA, than Amortized.
Accounting information is _____ if it would make a difference is a business decision?
capital budgeting
the process of planning significant investments in projects that have long-term implications such as the purchase of new equipment or the introduction of a new product
The right side of a standard account
adequate disclosure
financial statements are prepared from information on the worksheet
a business legally seperate from its owners, responsible for its own acts and debts
Product cost
an inventoriable cost (raw materials, direct labor, indirect cost)
Shipping costs
increase the cost of merchandise acquired (cost principle).
what is the ratio debt to equtiy?
Internal Control
The organizational plan and all the related measures designed to:
1. Safeguard assets
2. Encourage employees to follow company policy
3. Promote operational efficiency
4. Ensure accurate, reliable accounting records
purchases return
Credit allowed for the purchase price of returned merchandise, resulting in a decrease in the customer's accounts payable
financial rights to the assets of a business
Prime cost
a term referring to all direct manufacturing costs (labor and materials)
special journals
Contain amount columns used to record debits and credits to specific general ledger accounts
LIFO Reserve
For a company using LIFO, the difference between inventory reported using LIFO and inventory using FIFO.
a person who owns stock in a corporation. also called stockholder
debt ratio
the total assets that have been financed by debt (borrowing money)
multiple-step income statement
income statement that shows subtotals between sales and net income, categorizes expenses, and often reports the details of net sales and expenses
IS under GAAp includes
-net periodic pension expense
-current service cost
-interest cost
-expected or actual return on plan assets
-amortization of past service costs
-actuarial gains or loss
-ammortization of net transition asst/obligation
-effect of settlement or curtailment gains or losses
The treasure's goal
to reduce float and hasten the availibility of good funds
original cost basis
the amount originally paid for a depreciable asset
traditional insurance
provides coverage on a fee for service basis
cash register tape
Source document for recording cash and bank card sales
sales account
a revenue account used only to record sales of merchandise
asset gain or loss
(book value)-(what you sell it for)
Sales Invoice
invoice used as a source document for recording a sale on account.
Non-Current (long-term) liabilities
are liabilities not expected to be settled within one year (or one operating cycle of the company, if longer than one year).
cash payments journal
A special journal used to record only cash payment transactions.
Break even point in total sales dollars
Fixed Expenses/Contribution Margin Ratio
Operation Cash Flows (What goes where)
Operation Cash Flows cointains accounts that flow into Net Income.
time/term of note
the period of time from the date of the note to the maturity date
costs that are always irrelevant
depreciation, day to day costs of operation that aren't specific to a product/ customer and must be incurred because of the company is in business
Costs that are variable in both Merchandising and Manufacturing companies
Variable elements of selling and administrative costs like commissions and shipping costs
Sales in units to achieve target net income
[(Total fixed costs) + (target income)] / (contribution margin per unit)
Why shoudl managers be involved in setting the budget?
1. They have the best information on their own operations 2. They will be more committed if they helped develop it
one foot
An indirect reference
initial consonant sounds.
blank verse
unrhyming iambic pentameter
a paragraph of poetry
words that mimic sounds
literal meaning of a word
main idea of the poem
literary ballads
have a known author
saying less that one means
Rhythmic pattern in verse; the measured arrangement of syllables according to stress
pattern recurring sounds in syllables. Pattern of sounds created by the arrangement of altering stressed and unstressed syllables; a pair of patterned syllables constitutes a foot
the repetition of similar consonant sounds at the end of accented syllables
when an abstract quality or non-existent person or someone absent or dead is addressed as if present
an imaginative comparison between 2 unlike things in which one thing is said to be another
opposition or dissimilar things that are compared
the repetition of vowels without repetition of consonants used as an alternative to rhyme in verse
a complex, generally long lyric poem on a serious subject appeal both the imagination and the intellect and many commemorate events or praise people or elements o nature
Harlem Renaissance
Langston Hughes, 1920s in Harlem, recognition of talent in Harlem
comparing two unlike things with like or as
Lyric poem
A short poem that expresses emotions
extended metaphor
a metaphor that continues throughout the whole poem
The repeating of sounds words or phrases.
free verse
poetry without fixed meter or rhyme
masculine rhyme
Describes the rhyming of single syllable words. Also occurs where rhyming words of more than one syllable when the same sound is occurs in the final stressed syllable
what a word suggests beyond its surface definition
A fictitious character created by an author to be the speaker of the poem story or novel always the narrator
how the author uses words, phrases, and sentences to form his or her ideas; it is also thought of as the qualities and characteristics that distinguish one writer's work from the work of others
A brief poem or other writing in praise of a deceased person
a major exaggeration that may put a picture in a reader's mind
Imagery/Sensory Language
using language in apoem that appeals to one or more of thereaders' five senses (see, hear,feel,taste, and smell)
a funeral song of lamentation; a short lyric of mourning.
epic poem
long poem narrating deeds of a hero
Logic Appeal
Uses Evidence and Claims to convince an audience of a certain point
a formal or elegant letter b: a composition in the form of a letter
Sensory Detail
Detail that applys to the 5 senses: taste, touch, sound, sight, and smell
Denoting a line of verse in which a logical or rhetorical pause occurs at the end of the line, usually marked with a period, comma, or semicolon.
an older word for meter. The term is also used to refer to any metrical unit such as a foot.
the use of hints or clues to suggest what will happen later
story that is told in a novel, play, movie etc.
character sketch
a short piece of writing that reveals or shows something important about a person or fictional character
internal rhyme
a rhyme created by two or more words in the same line or verse
going back to an earlier time in a story for the purpose of making something in the present clearer
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