Show:
Terms Part 1
Terms Part 2
Terms Part 3
Terms Part 4
Terms Part 5
100
The ease at which an asset can be converted to cash
What is liquidity?
100
The portion of a business's profits that is not distributed to its stockholders as dividends
What is retained earnings?
100
Where every financial transaction is first recorded
What is a journal?
100
The principle that expenses incurred in producing revenues must be deducted from the revenue they generated during the same accounting period
What is the matching principle?
100
Most recently purchased items are recorded as being sold first
What is LIFO (last in, first out)?
200
The ability of an entity or individual to pay debts.
What is solvency?
200
Materials cost used in creating a company's products along with the direct labor costs to produce the goods
What is cost of goods sold?
200
A book of accounts containing a separate sheet or section for each account
What is a ledger?
200
Journal entries that are usually made at the end of an accounting period to allocate income and expenses to the period in which they actually occurred
What are adjusting entries?
200
Paying off debt in regular installments over a period of time
What is amortization?
300
Furniture and equipment held or used for longer than one year. Sometimes called property, plant and equipment
What are fixed assets?
300
Sales revenue less cost of merchandise (or goods) sold
What is gross profit on operations?
300
A summary of the balances of all general ledger accounts at the end of an accounting period
What is a trial balance?
300
Assets = Liabilities + Owners' Equity
What is the accounting equation?
300
Amounts owed to suppliers for products or services that have been purchased on open account
What is accounts payable?
400
Cash and other items that will or can become cash within a year
What are current assets?
400
The number of times per year a firm sells and replaces its inventory; the measurement of how fast a company's inventory is turned into sales
What is inventory turnover?
400
The cost of an asset minus depreciation; also known as carrying value
What is book value?
400
A statement of a firm's financial position on a particular date; sometimes also known as the Statement of Financial Position
What is a balance sheet?
400
Amounts owed by customers for products or services that they have purchased on an open account
What is accounts payable?
500
The owners' investment in a business as listed on the balance sheet
What is owners' equity?
500
A means for performing financial transactions via computer terminals
What is an Electronics Fund Transfer System (EFTS)?
500
Allocation of the cost of a long-term asset over a period of time
What is depreciation?
500
Oldest inventory items are recorded as being sold first
What is FIFO (first in, first out)?
500
When revenues exceed expenses; sometimes called the "bottom line"
What is net income?