Term
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Definition
| The processes by which a company safeguards its assets and provides reasonable assurance regarding the reliability of the company's financial reporting, the effectiveness and efficiency of its operations, and its compliance with applicable laws and regulations |
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Term
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Definition
| A monthly report from a bank that shows deposits recorded, checks cleared, other debits and credits, and a running bank balance. |
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Definition
| Open accounts owed to the business by trade customers. |
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Term
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Definition
| Written promises that require another party to pay the business under specified conditions (amount, time, interest) |
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Term
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Definition
| Bases bad debt expense on an estimate of uncollectible accounts. |
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Term
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Definition
| The expense associated with estimated uncollectible accounts receivable. |
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Term
| Allowance for Doubtful Accounts |
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Definition
| A contra-asset account containing the estimated uncollectible accounts receivable. |
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Term
| Percentage of Credit Sales Method |
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Definition
| Bases bad debt expense on the historical percentage of credit sales that result in bad debts. |
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Term
| Aging of Accounts Receivable Method |
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Definition
| Estimates uncollectible accounts based on the age of each account receivable. |
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Term
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Definition
| Tangible property held for sale in the normal course of business or used in producing goods or services for sale. |
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Term
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Definition
| Includes goods held for resale in the ordinary course of business. |
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Term
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Definition
| Includes items acquired for the purpose of processing into finished goods. |
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Term
| Work in Progress Inventory |
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Definition
| Includes goods in the process of being manufactured. |
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Term
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Definition
| Includes manufactured goods that are complete and ready for sale. |
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Term
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Definition
| Refers to the earnings of employees who work directly on the products being manufactured. |
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Term
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Definition
| Manufacturing costs that are not raw material or direct labor costs. |
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Term
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Definition
| Refers to the sum of beginning inventory and purchases (or transfers to finished goods) for the period. |
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Term
| Cost of Goods Sold Equation |
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Definition
| BI (Beginning Inventory) + P (Purchases) - EI (Ending Inventory) = CGS |
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Term
| Specific Identification Method |
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Definition
| Identifies the cost of the specific item that was sold. |
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Term
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Definition
| Assumes that the first goods purchased (the first in) are the first goods sold. |
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Term
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Definition
| Uses the weighted average unit cost of the goods available for sale for both cost of goods sold and ending inventory. |
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Term
| Lower of Cost or Market (LCM) |
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Definition
| A valuation method departing from the cost principle; it serves to recognize a loss when replacement cost or net realizable value drops below cost. |
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Term
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Definition
| The current purchase price for identical goods. |
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Term
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Definition
| The expected sales price less selling costs (e.g., repair and disposal costs). |
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Term
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Definition
| A contra-asset for the excess of FIFO over LIFO inventory. |
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Term
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Definition
| The amount (a) payable at the maturity of the bond and (b) on which the periodic cash interest payments are computed. |
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Term
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Definition
| The nominal value per share of capital stock specified in the charter; it serves as the basis for legal capital. |
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Term
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Definition
| Another name for principal, or the maturity value of the bond. |
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Term
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Definition
| An unsecured bond; no assets are specifically pledged to guarantee repayment. |
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Term
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Definition
| May be called for early retirement at the option of the issuer. |
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Term
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Definition
| May be converted to other securities of the issuer (usually common stock). |
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Term
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Definition
| A bond contract that specifies the legal provisions of a bond issue. |
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Term
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Definition
| The bond document that each bondholder receives. |
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Term
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Definition
| An independent party appointed to represent the bondholders. |
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Term
| Authorized Number of Shares |
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Definition
| The maximum number of shares of a corporation's capital stock that can be issued as specified in the charter. |
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Term
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Definition
| Represent the total number of shares of stock that have been sold. |
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Term
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Definition
| Refer to the total number of shares of stock that are owned by stockholders on any particular date. |
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Term
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Definition
| The basic voting stock issued by a corporation. |
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Term
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Definition
| The permanent amount of capital defined by state law that must remain invested in the business; it serves as a cushion for creditors. |
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Term
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Definition
| Capital stock that has no par value specified in the corporate charter. |
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Term
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Definition
| A corporation's own stock that had been issued but was subsequently required and is still being held by that corporation. |
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