wgu D102 financial accounting all terms

wgu D102 financial accounting all terms 5.0 (2 reviews) Students also studied Terms in this set (147) Western Governors UniversityD 102 Save Test Prep - WGU - Principles of Man...105 terms C_BondePreview

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18 terms brandy_stahura Preview WGU C483 - Principles of Managem...430 terms rwdixon1993Preview Pre-Ass 70 terms ruth Practice questions for this set Learn1 / 7Study using Learn an entry on the left side of a T-account accountan accounting record in which the results of transactions are accumulated; shows increases, decreases, and a balance accounts receivablea current asset representing money due for services performed or merchandise sold on credit Choose an answer 1credit (abbreviated Cr)2contra account 3earnings per share (EPS)4debit (abbreviated Dr) Don't know?

accrual accountingthe process of recording expenses and revenues when incurred and earned, regardless of when cash is received, and of adjusting original transaction data into refined measures of a firm's past economic performance and current economic condition accrual basis accountinga system of accounting in which revenues and expenses are recorded as they are earned and incurred, not necessarily when cash is received or paid accumulated depreciationreflects the wear and tear, or depreciation, of items since they were originally purchased additional paid-in capitalcapital invested by stockholders that exceeds the par value of the issued shares adjusting entriesentries required at the end of each accounting period to recognize, on an accrual basis, revenues and expenses for the period and to report proper amounts for asset, liability, and owners' equity accounts allowance methodthe recording of estimated losses due to uncollectible accounts as expenses during the period in which the sales occurred allowance for bad debtsa contra account, deducted from accounts receivable, that shows the estimated losses from uncollectible accounts amortizationthe process of cost allocation that assigns the original cost of an intangible asset to the periods benefited articulatointhe interrelationship among the financial statements assetseconomic resources that are owned or controlled by a company audit committeemembers of a company's board of directors who are responsible for dealing with the external and internal auditors average costingan inventory cost flow assumptions whereby cost of goods sold and the cost of ending inventory are determined by using an average cost of all merchandise available for sale during the period bad debt expensean account that represents the portion of the current period's credit sales that are estimated to be uncollectible bad debtsan uncollecible account receivable balance sheeta listing of an organization's assets and of its liabilities at a certain time bank reconciliationthe process of systematically comparing the cash balance as reported by the bank with the cash balance on the company's books and explaining any differences board of directorsindividuals elected by the stockholders to govern a corporation

bonusadditional compensation beyond the regular compensation that is paid to employees if certain objectives are achieved book valuefor a long-term operating asset, the asset's original cost less any accumulated depreciation business documentsrecords of transactions used as the basis for recording accounting entries; include invoices, check stubs, receipts, and similar business papers calender yearan entity's reporting year, from January 1 to December 31 cashcoins, currency, money orders, checks, and funds on deposit with financial institutions cash basis accountinga system of accounting in which transactions are recorded and revenues and expenses are recognized only when cash is received or paid cash collectionthe recovery of cash from a business or individual with which you have previously entered into a transaction cash dividendsa cash distribution of earnings to stockholders cash equivalentsshort-term, highly liquid investments such as Treasury bills, commercial paper, and money market funds chart of accountsa systematic listing of all accounts used by a company closing entiresentries that reduce all nominal (temporary) accounts to a zero balance at the end of each accounting period, transferring their pre-closing balances to a permanent balance sheet account common stockthe most frequently issued class of stock; typically provides a voting right but is secondary to preferred stock in dividend and liquidation rights compound interestinterest earned on you interest compound journal entrya journal entry that involves more than one debit or more than one credit or both consignmentan arrangement whereby merchandise owned by one party, the consignor, is sold by another party, the consignee, usually on a commission basis consolidated financial statementsstatements that combines the financial results of a "parent company" with other companies that it owns, call subsidiaries contingencycircumstance involving potential losses or gains that will not be resolved until some future event occurs contra accountan account that is offset or deducted from another account

contributed capitalthe portion of owners' equity contributed by investors (the owners) in exchange for shares of stock control activitiespolicies and procedures used by management to meet their objectives control environmentthe actions, policies, and procedures that reflect the overall attitudes of top management about control and its importance to the entity control procedurespolicies and procedures used by management to meet their objectives convertible preferred stockpreferred stock that can be converted by the shareholder to common stock at a specified conversion rate corporate chartera written document filed by the founders of a corporation with the state in which the corporation with the state in which the corporation is registered. It details the major components of a company, such as its objectives, structure, and planned operations cost of goods soldthe costs incurred to purchase or manufacture the merchandise sold during a period credit (abbreviated Cr)an entry on the right side of a T-account current assetscash, accounts receivable, and inventory current liabilitiesthose obligations expected to be paid within one year, the most common being accounts payable date of recordthe date selected by a corporation's board of directors on which the stockholders of record are identified as those who will receive dividends debit (abbreviated Dr)an entry on the left side of a T-account declaration datethe date on which a corporation's board of directors formally decides to pay a dividend to stockholders declining-balance depreciation methodan accelerated depreciation method in which an asset's book value is multiplied by a constant depreciation rate (such as double the straight-line percentage, in the case of double-declining-balance) depreciationthe process of cost allocation that assigns the original cost of plant and equipment to the periods benefited detective controlsinternal control activities that are designed to detect the occurrence of errors and fraud developmentthe application of a company's research findings to develop a plan or design for new or improved products and processes as part of a company's larger (R&D) activities