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Definition
| any asset which is expected to be converted to cash, sold, or expire within a year or the normal operating cycle, if less. Examples include cash, marketable securities, or short-term investments, accounts receivable, inventories, or prepaid expenses |
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| any tangible assets whose usefulness to the business extends beyond one year or the normal operating cycle. Examples include land, buildings, equipment, and vehicles |
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Definition
| generally, investments in stocks or bonds intended to be held for more than one year. Also includes prepaid assets that may not expire in longer than a year, investment in real estate, and the second year of a 2-year insurance policy would also be a long-term investment |
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Term
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Definition
| non-current assets that do not have physical substance generally, give the company an exclusive right of use for specific period of time. Examples include patents, copyrights, tradenames, trademarks, organization costs, and goodwill |
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Term
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Definition
| includes subtracting sales returns and allowances and sales discounts from sales |
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Definition
| an accumulation of costs related directly to the revenues |
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Definition
| Net Purchases + Beginning Inventory |
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Definition
| any liability that is due beyond one year or the normal operating cycle. Examples include mortgage payable, notes payable, bonds payable, and any deferred income taxes payable beyond on year. |
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Definition
| Common Stock Account and Retained Earnings |
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Term
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Definition
| gross profit divided by net sales revenue |
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