Details Title: 2009 Midterm Description: Vocabulary Total Flash Cards: 25 Created: 01/17/2009 14:29:39		New Users: To study from this flashcard set, or to create your own your own study flash cards, REGISTER HERE. Existing Users: CLICK HERE. Additional Accounting Flashcards
Cards in this set: Term Assets   Definition Resources owned by a company Term Revenues Definition Increase in assets that result from the sale of products or services Term Liquidity Definition Abilty to pay obligations that are expected to become due within the next fiscal year Term Temporary Accounts Definition Revenues, Expenses, Dividends (Transfered to Retained Earnings) Term Statement of Cash Flows  Definition Financial Statement--Provides financial Info about cash receipts and cash payments Term Partnership Definition Business owned by two or more Term Unearned Revenues Definition Cash recieved before a company earns revenue (Recorded as Liability)  Term Ledger Definition The group of accounts maintained by a company Term Dividends Definition Payment of cash to a Company's Stockholders Term Prepaid Expenses Definition Expenses paid in cash and recorded as assets before they are consumed Term Double-Entry-System Definition System that records dual effect of each transaction in appropriate accounts (T-accounts) Term Time Period Assumption Definition Assumptions that the life of a business can be divided into "Fiscal Years or Quaters" Reports covering these periods can be prepared for the business  Term Contra Revenue Account Definition Account that is offset against a revenue account on the Income Statement Term Consistency Definition Use of same Accounting Principles and Methods from year to year Term Property Plant & Equipment Definition Assets of a permanent nature Is used by Company Are not meant to be resold  Term Gross Profit Definition Excess of Net sales over cost of goods sold Term Solvency Definition Ability to pay interest as it comes due Repay face value of debt at maturity  Term Workng Capital Definition Differnce between amounts of Current Assets and Current Liabilities Term Perpetual Inventory System Definition System in which a company maintains the cost of each inventory item and the records continuously show inventory on hand Term Fiscal Year Definition Accounting Period=1 year Term Consignment Definition Goods held for sale by Consignee although ownership of the goods is retained by Consignor Term Post-Closing Trail Balance Definition List of permanent accounts and their balances after a company has journalized and posted closing enteries Term Relevance Definition Quality of info that indicates the Info makes a difference in a decision Term Cost of Goods Sold (COGS) Definition Total cost of merchandise sold during a period Term FOB Destination Definition Good placed Free On Board at the buyers place of business and the seller pays the freight cost, goods belong to the seller while in transit