Flashcards in Reversed Chapter (1) Deck (53)
An approach to transfer pricing that allows managers of decentralized units to agree (negotiate) among themselves as to the transfer price.
The amount by which expenses exceed revenues.
A concept of accounting that requires accounting records and the data reported in financial statements to be based on objective evidence.
The owner’s right to the assets of the business.
An unincorporated business form consisting of two or more persons conducting business as co-owners for profit.
Items such as supplies that will be used in the business in the future.
The field of accounting whereby accountants are employed by a business firm or a not-for-profit organization.
The difference between the amounts received from customers for goods or services provided and the amounts paid for the inputs used to provide the goods or services.
A business owned by one individual.
The field of accounting where accountants and their staff provide services on a fee basis.
Public Company Accounting Oversight Board (PCAOB) A new oversight body for the accounting profession that was established by the Sarbanes- Oxley Act.
Public Company Accounting Oversight Board (PCAOB)
A leverage ratio that measures the margin of safety of long-term creditors; calculated as the net fixed assets divided by the long-term liabilities.
ratio of liabilities to stockholders’
Money received for rent.
Net income retained in a corporation.
A summary of the changes in the retained earnings in a corporation for a specific period of time; such as a month or a year.
retained earnings statement
Increases in assets from performing services or delivering products to customers.
The total amount charged customers for merchandise sold; including cash sales and sales on account.
The relative distribution of sales among the various products available for sale.
An act passed by Congress to restore public confidence and trust in the financial statements of companies.
Securities and Exchange
A business providing services rather than products to customers.
A summary of the cash receipts and cash payments for a specific period of time; such as a month or a year.
statement of cash flows
The owners’ equity in a corporation.