front 1 Consignee | back 1 Receiver of goods owned by another who holds them for purposes of selling them for the owner |
front 2 Consignor | back 2 Owner of goods held by another party who will sell them for the owner. |
front 3 FIFO | back 3 Assumes cost flow in the order incurred |
front 4 LIFO | back 4 Assumes the most recently purchased inventory is first sold |
front 5 Specific ID | back 5 cost of an inventory item as its COGS |
front 6 Lower Cost or Market | back 6 Adjustment made when inventory cost is higher than market price |
front 7 Rising Costs in LIFO | back 7 Report the lowest net income |
front 8 Rising costs in FIFO | back 8 Report the highest net income |
front 9 Internal controls | back 9 All policies and procedures used to protect assets, ensure reliable accounting, promote efficient operations, and urge adherence to company policies |
front 10 Sarbanes Oxley Act | back 10 Requires internal managers and auditors to document and verify internal controls |
front 11 Principles of Internal Control | back 11 Update and clearly establish responsibilities Maintain adequate records Insure assets and bond key assets Separation of duties Use devices that improve internal control Perform regular reviews |
front 12 Limitations of Internal Control | back 12 Human error Fraud Collusion Ethics Cost benefit constraint |
front 13 Cash | back 13 Includes currency, coins, and amounts on deposit in bank checking or savings accounts |
front 14 Liquidity | back 14 Availability of resources to meet short-term cash requirements |
front 15 Cash Management | back 15 Have cash on hand to meet necessary requirement Cash payments when due - keep minimum level for operation |
front 16 Bank Reconciliation | back 16 Report that explains the difference between the book (companyy) balance of cash and the cash balance reported on the bank statement, for purposes of computing the adjusted cash balance |
front 17 Bank Credit Card | back 17 no data |
front 18 Department store credit card | back 18 A/R Sales COGS Merch inv |
front 19 Journal Entry for Sales and Inventory | back 19 Cash Credit Card Exp Sales |
front 20 Allowance for doubtful accounts | back 20 no data |
front 21 % of sales journal entry | back 21 Bad debt exp allowance for doubtful accounts |
front 22 % of AR journal entry | back 22 no data |
front 23 Bad debt (allowance method) | back 23 Allowance for doubtful accounts A/R |
front 24 Reinstate an account | back 24 no data |
front 25 Notes receivable | back 25 Promissory note to pay specified amount with stated interest at a certain date by signing |
front 26 Formula for Interest | back 26 Principal x rate (annual) x time (365) |
front 27 Plant Assets | back 27 Tangible assets used in a company's operations that have a useful life of more than one accounting period |
front 28 Lump-Sum Purchase | back 28 Plant assets that are purchased as a group in a single transaction for a lump-sum price |
front 29 Depreciation | back 29 Recognize related expense of the cost of a fixed asset that contributes to revenue |
front 30 Accumulated depreciation | back 30 Contra account that includes total depreciation expense for all prior periods for which the asset was used |
front 31 Cost | back 31 Amount spent to acquire, set up, and make ready for use |
front 32 Salvage value | back 32 estimated price that we believe we can recoup at the end of the asset useful life |
front 33 Useful life | back 33 the service life for out purposes of fixed assets used in operations |
front 34 Depreciable cost | back 34 Cost - salvage value / useful life |
front 35 Straight line depreciation | back 35 Depreciation exp Accumulated Depreciation |
front 36 Double declining depreciation | back 36 2 x 1/est useful life x book value |
front 37 Partial Year depreciation | back 37 Total cost - est salvage value / total units expected over life of machine |
front 38 Disposal of depreciated asset | back 38 Accumulated depreciation "Machine" |
front 39 Natural Resources | back 39 Timber, gold, coal, oil, etc |
front 40 Intangible assets | back 40 Non-physical rights to use in operations |
front 41 Patents | back 41 Federal gov grants exclusive right to an invention of new technology 20 years |
front 42 Copyrights | back 42 Music, artwork, literary works Life of creator + 70 years |
front 43 Franchises | back 43 Company allows someone to use their product |
front 44 Trademarks | back 44 Symbols, songs, phrases that identifies a company or product |
front 45 Goodwill | back 45 Difference between the purchase price of our company and market value of net assets |
front 46 Amortization | back 46 Process of allocating the cost of an intangible asset to expense over its estimated seful life |
front 47 Book value | back 47 Asset's acquisition costs less its accumulated depreciation |
front 48 Sale of plant asset at no gain or loss | back 48 Cash Accumulated depreciation Plant Assets |
front 49 Purchase of land | back 49 Land Building Cash |