Term
| Statement of retained earnings |
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Definition
| usually included in Stockholder's equity |
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Term
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Definition
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Term
Proprietorship
Partnership |
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Definition
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Term
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Definition
| =Liabilities+Stockholder's Equity |
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Term
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Definition
| Cash, Property, Plant, Equipment, Accounts Receivables, Fixed Costs |
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Term
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Definition
| Accounts Payable , Income Tax Payable |
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Term
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Definition
Common Stock-Paid in Capital
Retained Earnings-Earned but kept in business
Revenues-Increases Retained earnings
Expenses-Decreases Retained earnings |
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Term
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Definition
| They are not expenses. They don't impact Net income |
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Term
| Beginning retained earnings+ Net income - Dividents |
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Definition
| = Ending retained earnings |
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Term
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Definition
| List of Assets, Liabilities and Owner's equity |
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Term
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Definition
| Expected to be converted to cash, sold within 12 months |
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Term
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Definition
| A debt expected to be paid within next year |
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Term
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Definition
| Negative balance in retained earnings |
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Term
| Stable Monetary Unit Assumption |
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Definition
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Term
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Definition
| Reports cash receipts and cash payment |
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Term
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Definition
| Any event that has a financial impact on the business and can be measured reliably |
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Term
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Definition
| An expense which we have not paid yet |
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Term
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Definition
Always increase Retained Earnings
Always decrease Retained Earnings |
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Term
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Definition
Left Side Right Side
Debits Credits |
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Term
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Definition
| Records the impact of a business transaction as it occurs, whether the business receives or pays no cash |
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Term
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Definition
Records only cash transactions. Cash receipts and cash payments.
Cash receipts are treated as revenue.
Cash payments as expenses. |
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Term
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Definition
| An adjustment for payment of an item or receipt of cash in advance. |
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Term
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Definition
| Allocates the cost of plant asset to expense over the asset's useful life |
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Term
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Definition
| The opposite of a deferral |
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Term
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Definition
| Expenses paid in advance (Asset) |
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Term
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Definition
| Long-lived tangible assets (Land, building, equipment) |
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Term
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Definition
| Equipment-Accumulated deferral+Buildings-Accumulated depreciation |
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Term
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Definition
| Has been earned, but not yet collected |
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Term
| Revenues, Expenses and Dividents |
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Definition
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Term
| Assets, Liabilities, Stockholder's Equity |
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Definition
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Term
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Definition
| What bank did with the customer's cash |
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Term
| Electronic Funds Transfer (EFT) |
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Definition
Moves cash by electronic communication
(Bank side of Reconciliation |
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Term
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Definition
| You have recorded them, but the bank has not paid them. |
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Term
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Definition
| You have recorded these deposit, but the bank has not |
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Term
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Definition
| Bank may subtract from your account a check written by other |
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Term
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Definition
| Total current assets/Total current Liabilities (the higher the better) |
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Term
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Definition
| The excess of sales revenue over cost of goods sold (COGS) |
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Term
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Definition
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Term
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Definition
| Cost of goods available/Number of Units available |
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Term
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Definition
| Number of Units Sold * Average Cost per Unit |
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Term
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Definition
| Number of Units on hand * Average cost per Unit |
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Term
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Definition
| Gross Profit/Net sales Revenue |
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Term
Inventory Turnover
COGS/Average Inventory |
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Definition
| How rapidly the products are selling (the higher the better) |
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Term
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Definition
| Patents, copyrights , goodwill , No physical form |
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Term
| Double Decking depreciation rate per year |
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Definition
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Term
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Definition
| Total current Assets-Total current liabilities |
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Term
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Definition
| Quick Assets/Total current Liabilities |
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Term
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Definition
| Total liabilities/Total Assets |
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Term
| Return on Sale (Profit Margin) |
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Definition
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Term
| Asset Turnover (DuPont Formula) |
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Definition
| Nets sales/Total Average Assets |
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Term
| Return on Assets (DuPont Formula) |
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Definition
Net income/Average total Assets or
Profit Margin * Total Asset Turnover |
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Term
| Leverage Ratio (DuPont Formula) |
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Definition
| Total Average Assets/Total Stockholders Equity |
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Term
| Return on Stockholder Equity |
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Definition
Net income/Total Average Common Equity or
ROA*Leverage Ratio(equity multiplier)or
Profit Margin *Leverage ratio *Total Asset turnover |
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Term
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Definition
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Term
| Operating Income Percentage |
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Definition
| Operating Income/Net sales |
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Term
| Earning per share common stock |
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Definition
| (Net income-Preferred Dividends)/Average Outstanding Common equity |
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