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  1. Finished Goods Inventory
  2. Convertible Bond
  3. Net Book Value
  4. Straight-Line Amortization
  5. Accounts Receivables
  6. Goods Available For Sale
  7. Bond Certificate
  8. Deferred Expenses
  9. Current Liabilities
  10. Bank Reconciliation
  11. FASB
  12. Cost of Goods Sold Equation
  13. Fair Value Method
  14. Stock for Control
  15. Gross Profit
  16. Stated Rate
  17. Time Value of Money
  18. Total Assets Turnover Ratio and formula
  19. Par Value
  20. Trading Securities
  21. Cash
  22. Deferred Revenues
  23. Work In Proces Inventory
  24. Unit-Measure Assumption
  25. Market Interest Rate
  26. Cash Equivalent
  27. Primary objective of external financial reporting
  28. Quick Ratio Formula
  29. Cash Equivalents
  30. Times Interest Earned and formula
  31. Accounts
  32. Current Dividend Preference
  33. Debt-to-Equity and formula
  34. Estimated Useful Life
  35. Acquisition Cost
  36. Residual Value
  37. Transaction Analysis
  38. Retained Earning Equation
  39. Sales Discount
  40. Cash Flow from Operating Activities, and examples
  41. Post-Closing Trial Balance
  42. Legal Capital
  43. GAAP
  44. Depreciation
  45. Allowance for Doubtful Accounts
  46. Perpetual Inventory System
  47. Gross Profit Percentage and formula
  48. Equity Method
  49. Specific Identification Method
  50. Bond Premium
  51. Revenue Principle
  52. Amortized Cost Method
  53. Internal Controls
  54. Percentage of Credit Sales Method
  55. Closing Entry
  56. Copyrights
  57. Notes Receivables
  58. Non-cash Investing and Financing Activities
  59. Accrued Revenues
  60. Basic Accounting Equation
  61. Capital Lease
  62. Tangible Assets
  63. Income Statement
  64. Current Assets
  65. Qualitative Characteristics of Financial Information
  66. Stockholders' Equity (Owners' Equity)
  67. Inventory
  68. Passive Investments
  69. Common Stock
  70. Direct Labor
  71. Trustee
  72. Depletion
  73. Accrual Basis Accounting
  74. Bond Discount
  75. Statement of Retained Earnings
  76. Earnings Per Share and formula
  77. Average Cost Method
  78. Writing Off Uncollectible Accounts
  79. Raw Materials Inventory
  80. Long-Term Liabilities
  81. Aging of Accounts Receivable Method
  82. LIFO Last-in, First-out Method
  83. Authorized Number of Shares
  84. Materiality
  85. Long-Lived Assets
  86. Treasury Stock
  87. Stock Dividend
  88. Investments in Affiliates
  89. Net Loss
  90. Trial Balance
  91. FIFO First-in, First-out Method
  92. Time Period Assumption
  93. Dividend Yield and formula
  94. Inventory Turnover and formula
  95. Working Capital
  96. Accrued Expenses
  97. Journal Entry
  98. Stock Split
  99. Contra-Account
  100. Assets
  101. Transaction
  102. Credit Card Discount
  103. Trademark
  104. Stock for Significant Influence
  105. Purchase Method
  106. Audit
  107. Bonds Payable
  108. Merchandise Inventory
  109. Quality of Income Ratio and formula
  110. Capital Acquisition Ratio and formula
  111. Contingent Liability
  112. Fixed Assets Turnover and formula
  113. SEC
  114. Face Amount
  115. Matching Principle
  116. General Journal
  117. Adjusting Entries
  118. Direction of Transactions
  119. Periodic inventory System
  120. No-Par Value Stock
  121. Operating cycle
  122. Bond Principal
  123. Gains
  124. Accounting
  125. Current Ratio and formula
  126. Accounting entity
  127. Units-Of-Production Depreciation and formula
  128. Allowance Method
  129. Amortization
  130. Issued Shares
  131. Net Income ("the bottom line")
  132. Liabilities
  133. Notes
  134. Continuity Assumption
  135. Cash Flow from Investing Activities, and examples
  136. Statement of Cash Flows
  137. Present Value and formula
  138. Indirect Method
  139. Accounting Period
  140. Revenues
  141. The Cash Flow Statement Equation
  142. Bank Statement
  143. Future Value
  144. Indenture
  145. Sales Returns and Allowances
  146. Order of the steps in the
    accounting cycle at the end of the accounting period
  147. Merger
  148. Receivables Turnover Ratio and formula
  149. Straight-Line Depreciation and formula
  150. Economic Return from Investing formula
  151. The three steps in the transaction analysis process
  152. Order of the financial statements.
  153. Effective-Interest Amortization
  154. Cash Basis Accounting
  155. FOB Shipping Point (free on board)
  156. Accounts Payable Turnover Formula
  157. FOB Destination
  158. Cumulative Dividend Preference
  159. The four basic statements:
  160. Securities Available for Sale
  161. Conservatism
  162. Factory Overhead
  163. Intangible Assets
  164. Outstanding Shares
  165. Annuity
  166. Accounting Cycle
  167. Operating Lease
  168. Coupon Rate
  169. Direct Method
  170. Preferred Stock
  171. Bad Debt Expense
  172. Dividends In Arrears
  173. Unrealized Holding Gains or Losses
  174. Modified Accelerated Cost Recovery System (MACRS)
  175. Temporary Accounts
  176. Cost Principle
  177. Callable Bond
  178. Accrued Liabilities
  179. Debenture
  180. Goodwill and formula
  181. Cash Flow from Financing Activities, and examples
  182. Permanent Accounts
  183. Separate-Entity Assumption
  184. Balance Sheet
  185. Declining-Balance Depreciation and formula
  186. T-Account
  187. Held-to-Maturity Investments
  188. Elements of the Income Statement
  189. Liquidity
  190. Patent
  191. Expenses
  192. Losses
  193. FOB Shipping Point vs FOB Destination
  194. Natural Resources
  1. a Is used when an investor can exert significant influence over an affiliated; the method permits recording the investor's share of the affiliate's income.
  2. b Debit (dr) is on the LEFT side of an account.
    Credit (cr) is on the RIGHT side of an account.
  3. c Meets a least one of the four criteria establish by GAAP and results in the recording of an asset and liability.
  4. d Is the expense associated with estimated uncollectible account receivable.

    Bad debt expense xxx
    Allowance for doubtful accounts xxx
  5. e +/- Cash flow from Operating Activities (CFO)
    +/- Cash flow from Investing Activities (CFI)
    +/- Cash flow from Financing Activities (CFF)
    ----------------------------------------
    Change in Cash
  6. f Is the method similar to the Declining-Balance method and is applied over relatively short asset live to yield high depreciation expense in the early years.
  7. g Of presenting the operating activities section of the cash flow statement reports components of cash flow from operating activities as gross receipts and gross payments.
  8. h Assets have special rights but not physical substance.
  9. i Indicates the amount of financing provided by owners of the business and earnings. Is the sum of the contribute capital + the retained earnings.
  10. j Of presenting the operating activities section of the cash flow statement adjust net income to compute cash flow from operating activities.
  11. k Are the company's debts or obligations. Which will be paid with assets or services.
  12. l Is a stock that has specified rights over common stock.
  13. m Are the process by which a company safeguards its assets.
  14. n Earnings from the sale of goods or services to costumers. Revenues are reported whether or not have yet been paid for.
  15. o Ratio that measures the sales dollar generated by each dollar of fixed assets used.

    Fixed Asset Turnover = Net Sales / Average Net Fixed Assets
  16. p Are the economic resources owned by the company. Each of these economic resources is expected to provide future benefits to the firm.
  17. q Includes goods in the process of being manufactured.
  18. r Are assets that occur in nature, such as minerals deposits, timber tracts, oil and gas.
  19. s Is a contra-asset account containing the estimated uncollectible account receivable.
  20. t A detailed inventory record is maintained, recording each purchase and sales during the accounting period.
  21. u Ratio that reflects the portion of purchases of property, plan, and equipment financed from operating activities.

    Capital Acquisition Ratio = Cash Flow from Operating Activities / Cash Paid for Property, Plant, and Equipment
  22. v Is the expected service life of an asset to the present owner.
  23. w Is the method that allocates the cost of an asset over its useful life based on the relation of it periodic output to its total estimated output.

    Depreciation Expense = ((Cost - Residual Value) / Estimated total production) x Actual Production
  24. x CFF- Are cash flow directly related to the financing of the enterprise itself. Example, the payment of money to investors and creditors.
  25. y Requires assets to be recorded at historical cost-cash paid plus the current dollar value of all none cash considerations given on the date of the exchange.
  26. z Reflects how many times average trade receivables are recorded and collected during the period.

    Receivables Turnover = Net sales / Average net trade account receivables
  27. aa Is a tool for summarizing transaction effects for each account, determining balances, and drawing inferences about a company's activities.
  28. ab Refers to the total number of shares of stock that are owned by stockholders on any particular date.
  29. ac "Footnotes" provide supplemental information about the financial condition of a company.
  30. ad Is the ability to have an important impact on the operating, investing and financing policies of another company (from 20% to 50% of the outstanding voting shares).
  31. ae Is the ratio that evaluates the operating performance and profitability of a company.

    EPS = Net Income / Average number of shares of common stock outstanding during the period
  32. af Is the interest that is associated with the use of money over time.
  33. ag States that businesses are assumed to continue to operate into the foreseeable future.
  34. ah Ending inventory and cost of good sold are determined at the end of the accounting period based on a physical count.
  35. ai Ratio that measures how quickly management is paying trade accounts.

    Average Payable Turnover = Cost of Good Sold / Average Accounts Payable
  36. aj Is the basic voting stock issued by a corporation.
  37. ak Is an exchange of assets or services to pay between a business and one or more external parties to a business or a measurable internal event such as the use of assets in operations.
  38. al Is an unsecured bond; no assets are specifically pledged to guarantee repayment.
  39. am Revenues from good shipped FOB Shipping Point are normally recognized at shipment. Revenues from goods shipped FOB destination are normally recognized at delivery.
  40. an Reports investments in debt securities held to maturity at cost minus any premium or plus any discount.
  41. ao Is a corporation's own stock that has been issued but subsequently reacquire and is still being held by that corporation.
  42. ap Is the net cash equivalent amount paid or to be paid for the asset.
  43. aq Is the ability to pay current obligations.
  44. ar Is an account that is an offset to, or reduction of, the primary accout.
  45. as Is a reduction of sales revenues for return of or allowances for unsatisfactory good.
  46. at Is an independent party appointed to represent the bondholder.
  47. au Is capital stock that has no par value specified in the cooperate charter.
  48. av Is a monthly report from a bank that shows deposits recorded, checks cleared, other debits and credits and a running bank balance.
  49. aw Return on investments based on dividends.

    Dividend Yield = Dividend per Share / Market Price per Share.
  50. ax Bases bad debt expenses on the historical percentage of credit sales that result in bad debts.
  51. ay Is a bond contract that specifies the legal provision of a bond issue.
  52. az Every transaction affects at least two accounts (dual effect), and the accounting equation MUST remain in balance after each transaction.
  53. ba "Real" are the Balance Sheet accounts that carry their anding balances into the next accounting period.
  54. bb Is the estimated amount to be recovered by the company at the end of the asset's estimated useful life.
  55. bc Are all investments in stock or bonds held primarily for the purpose of active trading (buying and selling) in the near future (classified and short term).
  56. bd "Cash-to-cash" is the time it takes for a company to pay cash to suppliers, sell goods and services to costumers, and collect cash from costumers.
  57. be Is the time period cover by the financial statements.
  58. bf Is the difference between the selling price and par when the bond is sold for less than par.
  59. bg Bases bad debt expenses on an estimate of uncollectible accounts.
  60. bh Exception suggest that care should be taken not to over state assets and revenues or understate liabilities and expenses.
  61. bi Ratio that suggests that the company relies on fund provided by creditors.

    Debt-to-Equity = Total liabilities / Stockholders' Equity
  62. bj Are obligations that will be settle by providing cash, goods, or services within the coming year.
  63. bk Is a standardized format that organizations use to accumulate the dollar effect of transactions on each financial statement item. "Chart of account"
  64. bl Is to provide useful economic information to help external parties make financial decisions.
  65. bm 1. Balance Sheet
    2. Income Statement
    3. Statement of Retained Earnings
    4. Statement of Cash flows
  66. bn Includes goods held for sale in the ordinary course of business.
  67. bo Financial Accounting Standards Board, is the private sector body given the primary responsibility to work out the detailed rules that become GAAP.
  68. bp Are tangible and intangible resources owned by a business and used in its operations over several years.
  69. bq Record assets and liabilities acquired in a merge or acquisition at their fair value on the transaction date.
  70. br Is the process of allocating the cost of buildings and equipment over their productive lives using a systematic and rational method.

    Depreciation Expense xxxx
    Accumulated Depreciation xxxx
  71. bs Information should be Relevant and Reliable.
  72. bt Reports the revenues less the expenses of the accounting period.
  73. bu Should be prepared as the last step of the accounting cycle to check that debits equal credits and all temporary accounts have been closed.
  74. bv Measures the sales generated per dollar of assets.
    TATR = Sales Revenue / Average Total Assets
    average (beginning balance + ending balance)/2
  75. bw Is the difference between the selling price and par when the bond is sold for more than par.
  76. bx Represent the total number of shares of stock that have been sold.
  77. by Is the exclusive right to publish, use, and sell a literary, musical, or artistic work.
  78. bz Occurs when one company purchase all of the assets and liabilities of another and the acquired company goes out of existence.
  79. ca Assumes that the most recently purchased units are sold first.
  80. cb "Unearned revenues" are previously recorded liabilities that need to be adjusted at the end of the accounting period to reflect the amount of revenue earned. Example, when cash was received and previously recorded:

    Unearned revenue xxx
    Revenue xxx
  81. cc Identifies the cost of the specific item that was sold.
  82. cd If total expenses exceed total revenues.
  83. ce Is the method that allocates the cost of an asset in equal periodic amounts over its useful life.

    Depreciation Expense = (Cost - Residual Value) x (1 / Useful life)
  84. cf Income statement, statement of retained earnings, balance sheet, and statement of cash flows.
  85. cg (Cash discount) is a cash discount offered to encourage prompt payment of an account receivable.
  86. ch Helps measure the ability of the company to pay its short-term obligations with short-term assets.
    Current Ratio = Current Assets / Current Liabilities
  87. ci is the current value of an amount to be received in the future; a future amount discounted fro compound inters.

    PV = ((1 / (1 + I)N ) x Amount
  88. cj May be called for early retirement at the option of the issuer.
  89. ck Is a list of all accounts with their balances to provide a check on the equality of the debits and credits.
  90. cl Is the stated rate of interest on bonds.
  91. cm Are short-term investments with original maturities of three months or less that are readily convertible to cash and whose value is unlikely to change.
  92. cn Is an examination of the financial reports to ensure that they represent claim and comfort with GAAP.
  93. co Indicates that the long life of a company can be reported in shorter time periods.
  94. cp Is the preferred stock feature that requires specific current dividends not paid in full to accumulate for every year in which they are not paid. These cumulative preferred dividends must be paid before any common dividends can be paid.
  95. cq Reports the amount of assets, liabilities and stockholders' equity of an accounting entry at a point in time.
  96. cr Is the process of verifying the accuracy of both the bank statement and the cash accounts of a business.
  97. cs Refers to the sum of beginning inventory and purchases for the period.
  98. ct CFO- Are cash flow that are directly related to earning income. Example, collecting cash from costumers, pay salaries, pay bills, pay to suppliers.
  99. cu Is another name for bond principal, or the maturity amount of the bond.
  100. cv Is used to report securities at their current market value.
  101. cw Is a series of periodic cash receipts or payments that are equal in amount each interest period.
  102. cx Or Associated companies, are investments in stock held for the purpose of influencing the operating and financing strategies of the entity for the long term.
  103. cy Is the dollar difference between total current assets and total current liabilities.
  104. cz Records revenues when cash is received and expenses hen cash is paid.
  105. da Includes manufactured good that are complete and ready for sale.
  106. db Is the ability to determine the operating and financing policies of another company through ownership of voting stock (company owns more than 50% of the outstanding voting shares).
  107. dc Does not meet any of the four criteria establish by GAAP and does not cause the recording of an asset and liability.
  108. dd Assets = Liabilities + Stockholders' Equity
  109. de Are previously acquired assets that need to be adjusted at the end of the accounting period to reflect the amount of expenses incurred in using the asset to generate revenue. Example, if cash was paid and previously recorded:

    Expense xxx
    Prepaid Expense xxx
  110. df Reports the way that net income and the distribution of dividends affected the financial position of the company during the accounting period.
  111. dg Is another name for bond principal, or the maturity of a bond.
  112. dh Estimates uncollectible accounts based on the age of each account receivable.
  113. di Is a method of amortizing a bond discount or premium on the basis of effective-interest rate; is the theoretically preferred method.
  114. dj Is granted by the federal government for a period of 20 years for an invention.
  115. dk Is a simplify method of amortizing a bond discount or premium that allocates an equal dollar amount to each interest period.
  116. dl Is the maximum number of shares of a corporation's capital stock that can be issued as specified in the charter.
  117. dm Assumes that the first goods purchased are the first goods sold.
  118. dn Are expenses that have been incurred but have not been paid at the end of the accounting period.
  119. do When title changes hand on delivery, and the seller normally pays for shipping.
  120. dp Or Yield, is the current rate of interest on debt when incurred.
  121. dq Are transactions that do not have direct cash flow effects; they are reported as a supplement to the statement of cash flow in narrative or schedule form.
  122. dr Records revenue when earned and expenses when incurred, regardless of the timing of cash receipts or payments.
  123. ds States that accounting information should be measure and reported in the national monetary unit.
  124. dt Is the feature of preferred stock that grants priority on preferred dividends over common dividends.
  125. du Is the rate of cash interest per period stated in the bond contract.
  126. dv Uses the weighted average unit cost of the goods available for sale for both cost of goods and ending inventory.
  127. dw Is a potential liability that has arisen as the result of a past event.
  128. dx Are previously unrecorded expenses that need to be adjusted at the end of the accounting period to reflect the amount incurred and the related payable account. Example, if cash will be paid:

    Expense xxx
    Payable xxx
  129. dy Is the systematic and rational allocation of the acquisition cost of an intangible asset over its useful life.
  130. dz Economic Return from Investing = (Dividends and Interest Received + Change in Fair Value) / Fair Value of Investments
  131. ea Requires that expenses be recorded when incurred in earning revenue.
  132. eb Are manufacturing costs that are not raw material or direct cost labor. Example, cost of light, supervisor's salary.
  133. ec Is a bond document that each bondholder receives.
  134. ed Writing off of an individual bad debt is recorded through a journal entry.

    Allowance for doubtful accounts xxx
    Accounts Receivables xxx
  135. ee Exception suggest that small amounts that not likely to influence a user's decision can be accounted for in the most beneficial manner.
  136. ef Are investments made to earn a return on funds that may be needed for future short-term or long-term purposes (less than 20% of the outstanding voting shares).
  137. eg Is a distribution od additional shares of a corporation's own stock.
  138. eh Generally Accepted Accounting Principles, are the measurement rules used to develop the information in financial statements.
  139. ei May be converted to other securities of the issuer (usually common stock).
  140. ej Assets have physical substance.
  141. ek Is the permanent amount of capital defined by state law that must remain invested in the business; serves as s cushion for creditors.
  142. el Net sales revenue minus cost of sales.
  143. em Includes items acquire for the purpose of processing into finish goods.
  144. en Is the amount (a) payable at the maturity of the bond and (b) on which the periodic cash interest payments are computed.
  145. eo "Nominal" are Income Statement accounts that are closed to Retained earnings at the end of the accounting period.
  146. ep 1. Identify the accounts affected and classify them by type of account.
    2. Determine the direction of the effect on each account.
    3. Verify that the accounting equation remains in balance.
  147. eq Are all passive investments other than trading securities and debt held to maturity (short or long term).
  148. er Ratio that measures the portion of the income that was generated in cash.

    Quality of Income Ratio = Cash Flow from Operating Activities / Net Income
  149. es Is tangible property held for sale in the normal course of business or used in producing goods or services for sale.
  150. et States that a business transactions are accounted for separately from the transactions of owners.
  151. eu Is the excess of total revenues over total expenses.
  152. ev Refers to the earnings of employees who work directly on the products being manufactured.
  153. ew Are investments in debt securities that management has the intent and ability to hold until maturity.
  154. ex Of an asset is the difference between its acquisition cost and accumulated depreciation, its related contra-account.
  155. ey The ratio shows the amount of resources generated for each dollar of interest expense.

    Times Interest Earned = (Net Income + Interest Expense + Income Tax expense) / Interest Expense
  156. ez Is an increase in the number of authorized shares by a specific ratio; it does not decrease retained earnings.
  157. fa Is a short-term, highly liquid investment with an original maturity of less than three months.
  158. fb Is a bookkeeping system, that records transactions in chronological order.
  159. fc Revenues, Expenses and Net Income.
  160. fd Are assets that will be used or turned into cash within one year.
  161. fe Is an accounting method for expressing the effects of a transaction on accounts in debits-equal-credits format.
  162. ff Is an exclusive legal right to use a special name, image, or slogan.
  163. fg Are written promises that require another party to pay the business under specified conditions (amount, time, interest).
  164. fh Are both stocks and bonds issued by corporations to raise money for long-term purposes.
  165. fi Are open accounts owned to the business by trade costumers.
  166. fj Represent the dollar amount of resources the entity used to earn revenue during the period.
  167. fk Ratio reflects how many times average inventory was produced and sold during the period.

    Inventory Turnover = Cost of Goods Sold / Average Inventory
  168. fl Are previously unrecorded revenues that need to be adjusted at the end of the accounting period to reflect the amount earned and the related receivable account. Example, cash will be received:

    Receivable xxx
    Revenue xxx
  169. fm Prepare a trial balance, journalize and post
    adjustments, prepare financial statements, and
    journalize and post the closing entries.
  170. fn Is the method that allocates the cost of an asset over its useful life based on a multiple of the straight-line rate (often two times).

    Depreciation Expense = ((Cost - Accumulated Depreciation) x ( 2 / Useful Life))
  171. fo CFI- Are cash flow related to the acquisition or sale of the company's productive assets. Example, the purchase of additional equipment.
  172. fp Ratio suggests good liquidity.

    Quick Ratio = Quick Assets / Current Liabilities
  173. fq Reports inflows and outflows of cash during the accounting period in the categories of operating, investing, and financing.
  174. fr Are amounts associated with price changes of securities that are currently held.
  175. fs States that revenues are recognize when:
    1. Good or services are delivered.
    2. There is persuasive evidence of an arrangement for costumer payment.
    3. The price is fixed or determinable.
    4. Collection is reasonably assured.
  176. ft Is money or any instrument that banks will accept for deposit and immediate credit to a company's account, such as check, money, or bank draft.
  177. fu Is the fee charged by the credit card company for its services.
  178. fv Are dividends on cumulative preferred stock that have not been declared in prior years.
  179. fw Ending Retained Earnings = (Beginning of Retained Earnings + Net Income) - Dividends
  180. fx Is the excess of the purchase price of a business over the fair value of the business's assets and liabilities.

    Goodwill = Purchase Price - Fair value of identifiable assets and liabilities.
  181. fy Transfers balances in temporary accounts to Retained Earnings and establishes zero balances in temporary accounts.
  182. fz Are increases in assets or decreases in liabilities from peripheral transactions.
  183. ga CGS = Beginning Inventory + Purchases of merchandise - Ending Inventory
  184. gb Is the organization for with financial data are to be collected.
  185. gc Is the sum to which an amount will increase as the result of compound interest.
  186. gd Is a systematic and rational allocation of the cost of a natural resource over the period of its exploitation.
  187. ge System that collects and processes (analyzes, measures, and records) financial information about an organization and reports that information to decision makers.
  188. gf Is the process followed by entities to analyze and record transactions, adjust the records at the end of the period, prepare financial statements, and prepare the records for the next cycle.
  189. gg Are all the entity's obligations not classified s current liabilities.
  190. gh When goods are shipped, title changes hands at shipment, and the buyer normally pays for shipping.
  191. gi Are entries necessary at the end of the accounting period to measure all revenues and expenses of that period.
  192. gj Measures a company's ability to charge premium prices and produce goods and services at low cost.
    Gross Profit Percentage = Gross Profit / Net sales
  193. gk Are decreases is assets or increases in liabilities from peripheral transactions.
  194. gl Security and Exchange Commission, is the U.S government agency that determines the financial statements that public companies must provide to stockholders, and the rules that they must use in producing those statements.