Term
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Definition
| the recording, classifying, and summarizing, and interpreting of financial events and transactions to provide management and other interested parties the information they need to make good decisions |
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Term
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Definition
| a yearly statement of the financial condition, progress, and expectations of an organization |
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Term
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Definition
| the job of reviewing and evaluating the records used to prepare a company's financial statements |
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Term
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Definition
| a six-step procedure that results in the preparation and analysis of the major financial statements |
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Term
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Definition
| the recording of business transactions |
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Term
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Definition
| the concept of writing every business transaction in two places |
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Definition
| a summary of all the transactions that have occurred over a particular period |
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Term
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Definition
| the financial statement that reports a firm's financial condition at a specific time |
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Term
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Definition
economic resources
(things of value)
owned by a firm |
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Term
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Definition
| how fast an asset can be converted into cash |
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Term
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Definition
| items that can or will be converted into cash within one year |
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Definition
| assets that are relatively permanent, such as land, buildings, and equipment |
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Term
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Definition
| long-term assets (patents, trademarks, copyrights) that have no real physical form but do have value |
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Definition
| what the business owes to others (debts) |
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Term
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Definition
| current liabilities involving money owed to others for merchandise or services purchased on credit but not yet paid for |
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Term
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Definition
| short-term or long-term liabilities that a business promises ot repay by a certain day |
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Term
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Definition
| long-term liabilities that represent money lent to the firm that must be paid back |
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Term
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Definition
| the accumulated earnings from a firm's profitable operations that were kept in the business and not paid out to stockholders in dividends |
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Term
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Definition
| the financial statement that shows a firm's profit after costs, expenses, and taxes; it summarizes all of the resources that have come into the firm (revenue), all the resources that have left the firm, and the resulting net income |
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Term
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Definition
| the value of what is received for goods sold, services rendered, and other financial sources |
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cost of goods sold
(or cost of goods manufactured) |
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Definition
| a measure of the cost of merchandise sold or cost of raw materials and supplies used for prodcing items for resale |
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Term
gross profit
(gross margin) |
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Definition
| how much a firm earned by buying (or making) and selling merchandise |
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Term
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Definition
| costs involved in operating a business, such as rent, utilities, and salaries |
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Term
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Definition
| financial statement that reports cash receipts and disbursements related to a firm's three major activities: operations, investmets, and financing |
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