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Definition
| Resources owned by a company |
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| Increase in assets that result from the sale of products or services |
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| Abilty to pay obligations that are expected to become due within the next fiscal year |
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| Revenues, Expenses, Dividends (Transfered to Retained Earnings) |
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| Financial Statement--Provides financial Info about cash receipts and cash payments |
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Definition
| Business owned by two or more |
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Cash recieved before a company earns revenue (Recorded as Liability) |
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| The group of accounts maintained by a company |
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| Payment of cash to a Company's Stockholders |
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Definition
| Expenses paid in cash and recorded as assets before they are consumed |
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Definition
| System that records dual effect of each transaction in appropriate accounts (T-accounts) |
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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 |
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Definition
| Account that is offset against a revenue account on the Income Statement |
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Definition
| Use of same Accounting Principles and Methods from year to year |
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| Property Plant & Equipment |
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Definition
Assets of a permanent nature Is used by Company Are not meant to be resold |
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Definition
| Excess of Net sales over cost of goods sold |
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Definition
Ability to pay interest as it comes due Repay face value of debt at maturity |
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Term
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Definition
| Differnce between amounts of Current Assets and Current Liabilities |
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Term
| Perpetual Inventory System |
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Definition
| System in which a company maintains the cost of each inventory item and the records continuously show inventory on hand |
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Definition
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Definition
| Goods held for sale by Consignee although ownership of the goods is retained by Consignor |
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| Post-Closing Trail Balance |
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Definition
| List of permanent accounts and their balances after a company has journalized and posted closing enteries |
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Definition
| Quality of info that indicates the Info makes a difference in a decision |
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| Cost of Goods Sold (COGS) |
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Definition
| Total cost of merchandise sold during a period |
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Term
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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 |
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