Reversed Chapter (1) Flashcards Preview

ACC 101 > Reversed Chapter (1) > Flashcards

Flashcards in Reversed Chapter (1) Deck (53)
Loading flashcards...
31

An approach to transfer pricing that allows managers of decentralized units to agree (negotiate) among themselves as to the transfer price.

net income

32

The amount by which expenses exceed revenues.

net loss

33

A concept of accounting that requires accounting records and the data reported in financial statements to be based on objective evidence.

objectivity concept

34

The owner’s right to the assets of the business.

owner’s equity

35

An unincorporated business form consisting of two or more persons conducting business as co-owners for profit.

partnership

36

Items such as supplies that will be used in the business in the future.

prepaid expenses

37

The field of accounting whereby accountants are employed by a business firm or a not-for-profit organization.

private accounting

38

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.

profit

39

A business owned by one individual.

proprietorship

40

The field of accounting where accountants and their staff provide services on a fee basis.

public accounting

41

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)

42

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’

43

Money received for rent.

rent revenue

44

Net income retained in a corporation.

retained earnings

45

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

46

Increases in assets from performing services or delivering products to customers.

revenues

47

The total amount charged customers for merchandise sold; including cash sales and sales on account.

sales

48

The relative distribution of sales among the various products available for sale.

Sarbanes-Oxley Act

49

An act passed by Congress to restore public confidence and trust in the financial statements of companies.

Securities and Exchange

50

A business providing services rather than products to customers.

service business

51

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

52

The owners’ equity in a corporation.

stockholders’ equity

53

A concept of accounting requiring that economic data be recorded in dollars.

unit of measure concept