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Accounting Function
Accounting For Types of Businesses
balance Sheet
Income Statement
Cash Flow
100
Any business activity involving money.
What is transaction?
100
Any 12-month operating period.
What is fiscal year?
100
A financial statement that shows the financial position of a business on a single, specific date.
What is balance sheet?
100
A financial statement that shows a business's profitability over a state period of time.
What is income statement?
100
The movement of cash in and out of a business.
What is cash flow?
200
A method of recording all transactions for a business in a specific format.
What is bookkeeping?
200
The amount of money left over after deducting the expenses from the gross profit.
What is net profit?
200
An asset of this kind can be easily exchanged for any other asset or turned into cash.
What is liquidity?
200
It shows the total amount of the goods bought by the business in a year.
What is purchase?
200
It reports on a business's cash flow over a stated period of time.
What is statement of cash flow?
300
Bills for goods and services either bought by or sold to the business.
What is invoice?
300
All the partially finished goods at inventory time.
What is goods in process?
300
It is called this because the shareholders are the only owners. Also known as equity in corporations.
What is shareholder's equity?
300
All the costs of doing business in a particular time period are matched with the revenue generated during this same period.
What is matching principle?
300
(net profit÷average owner's equity)*100%
What is rate of return on average owner's equity?
400
It occurs whenever you sell a stock for a price that is higher than what you paid for it.
What is capital gain?
400
Labour in departments that are not directly involved in the manufacturing process.
What is indirect labour?
400
current assets−current liabilities
What is working capital?
400
(net profit÷total revenue)*100%
What is rate of return on sales?
400
A magnet company that started in the early 1990s.
What is Polar Magnetics?
500
The form in which financial statements are presented to shareholders and potential investors.
What is annual report?
500
Expenses involved in operating all the production facilities.
What is factory overhead?
500
total current assets÷total current liabilities
What is current ratio?
500
The difference between the cost of the product and the selling price of the product.
What is margin?
500
Javier Espinal
Who is the owner of Polar Magnetics?