Financial Accounting Mid term
Terms
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- Depreciation
-
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decrease in values of asset.
Cash does not depreciate. - Estimated Life
- estimated amount of life in asset.
- Salvage Value
- amount you would like to get for asset when you trade it in.
- Book value
-
present value of your asset.
(computer equipment　ã‹ã‚‰ accumulated dep.　を引ã) - current ratio
-
can i pay all my current liabilities at this time?
current ratio= current assets/current liabilities - current assets
- cash+assets that can easily be turned to cash.
- plant assets
-
assets which depreciate.
land - contra accounts
-
account linked with another account and having an opposite normal balance;reported as a subtraction from the other account's balanc
Accumulated Dep.-Equipment
Equipment - Adjusting
- Journal entry at the end of accounting period to being an asset or liability account to its proper amount and update the related expense or revenue account.
- Net Income
-
Amount earned after subtracting all expenses necessary for and matched with sales for a period;also called income, profit, or earnings.
revenues exceed expenses - Net loss
- Excess of expences over revenues for a period.
- withdrawals
- assets an owner takes from the company for personal use.