accounting terms – Flashcards

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inventory
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current asset
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income taxes payable
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current liability
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interest expense
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income statement item
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dividends
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statement of owners equity item
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sales to customers
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income statement item
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equipment
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long term asset
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sale of stock to owners
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equity on balance sheet and statement of owners equity
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cash
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current asset
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bonds payable in 10 years
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long term liability
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employee wages
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income statement information
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net income is equal to
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revenues minus expenses
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equity is equal to
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assets minus liabilities
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beginning retained earnings is equal to
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equity minus common stock
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ending retained earnings is equal to
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beginning retained earnings plus net income minus dividends
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ending equity is equal to
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beg eq plus stock sold plus net income minus dividends
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long term assets
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land, equipment, and buildings
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total current liabilities
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notes payable and accounts payable
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long term liability
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mortgage payable
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stockholders equity
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common stock and retained earnings
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cash is equal to
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total assets minus accounts receivable minus supplies minus long term assets
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total current assets is equal to
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cash plus accounts receivable plus supplies
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total equity minus retained earnings is equal to
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common stock
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equity equals
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common stock plus retained earnings
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eps equals
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net income / # of outstanding shares
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roe equals
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net income / avg equity
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ending retained earnings is equal to
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net income plus beginning ret earnings plus stock sold minus dividends
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current ratio equals
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current assets / current liabilities
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working capital equals
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currents assets - current liabilities
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roi equals
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net income divided by average total assets
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roe equals
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net income divided by average total equity
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working capital equals
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current assets minus current liabilities
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current ratio equals
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current assets divided by current liabilities
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roi is also equal to
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margin x turnover
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turnover equals
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sales / avg total assets
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realization principal
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record revenue immediately after completion of job
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debit
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increase of assets or expenses, decreases of liability, equity, or income
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credit
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increase liability, equity, or revenue, decreases assets or expenses
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cash, notes rec, accts rec, inventory
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asset and debit
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sales revenue and interest revenue
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revenue and credit
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costs of goods sold, insurance expense, salaries expense
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expenses and debit
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retained earnings, common stock
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equity and credit
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mortgage payable
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liability and credit
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cash balance
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adds cash, cash sales, and accounts rec, deducts equip or pmts made before date indicated
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if expense is unrecorded
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net income is overstated
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total assets minus (total liabilities plus common stock)
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equals retained earnings for a balance sheet
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