Term
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Definition
| Terms of a loan agreement, if violated lender can renegotiate loan terms or force repayment |
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Term
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Definition
| Focuses on initial sale of stocks and bonds |
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Term
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Definition
| Focuses on subsequent trading in stocks and bonds |
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Term
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Definition
| responsibility for reports goes to board of directors |
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Term
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Definition
GAAP:categorize by function
IFRS:categorize by nature |
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Term
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Definition
| must be large enough to influence the decisions of financial statement users |
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Term
| Unqualified audit opinion |
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Definition
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Term
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Definition
| does not follow GAAP standards |
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Term
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Definition
| compares a company's results for 1 period against its own results for a series of time period |
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Term
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Definition
| compares results of 1 company w/ those in same section of industry(rival) |
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Term
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Definition
Total liabilities/total assets*100
The proportion of total assets financed by debt |
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Term
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Definition
Sales Revenue/avg. total assets
asset efficiency |
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Term
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Definition
net income/sales revenue * 100
profitability |
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Term
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Definition
| Policies intended to reasonably ensure that assets are protected+reports are accurate |
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Term
| Principals of Internal Control |
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Definition
Establish responsibility
Segregate duties
Restrict access
Document procedures
Verify |
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Term
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Definition
| documents the amount of cash a cashier receives |
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Term
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Definition
| mail clerk handles+records amounts received on cash receipt list |
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Term
| Goal of Internal Controls |
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Definition
| to ensure that he business pays for only properly authorized transactions |
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Term
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Definition
| process that controls the amount paid to others by limiting total cash in an account |
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Term
| perpetual inventory system |
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Definition
| inventory is updated after any transaction |
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Term
| periodic inventory system |
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Definition
| records inventory after a certain period |
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Term
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Definition
| refunds given to customers after goods have been sold+found unsatisfactory |
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Term
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Definition
| price reduction for customers who promptly pay their account balances |
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Term
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Definition
| when the goods being sold at a business are owned by someone else |
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Term
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Definition
| Oldest goods are sold 1st |
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Term
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Definition
| newest goods are sold 1st |
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Term
| Effects of de/increasing costs on FIFO/LIFO |
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Definition
FIFO LIFO
Inventory higher lower
COGS lower higher |
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Term
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Definition
| 365/inventory turnover ratio |
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Term
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Definition
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Term
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Definition
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