Accounting Chapter 19

The account that represents the total amount of investment in the corporation by its stockholders (owners).

• Investments

• Savings

• Capital Stock

• Stockholders Equity

The value of the stockholders’ claims to the corporation

• Investments

• Savings

• Capital Stock

• Stockholders Equity

  A corporation’s accumulated net income that is not distributed to stockholders.

• Savings

• Retained earnings

• Net Income

• Salary

Accounting characteristic that allows the financial information to be compared from one period to another period; also allows the comparison of financial information between businesses.

• Compatibility

• Warranty

• Comparability

• Liability

A characteristic requiring that accounting information be reasonably free of bias and error.

• Liabilty

• Reliability

• Responsibility

• Warranty

An accounting characteristic requiring that all information that would affect the decisions of financial statement users be disclosed in the financial reports.

• Relevance

• Reliance

• Liability

• Comparability

Accounting principle requiring a financial report to include enough information so that it is complete.

• matching principle

• going concern Principle

• full disclosure principle

An accounting guideline stating that information considered important (relative to the other information) should be included in financial reports.

• materiality

• assets

• furniture

• supplies

The amount of sales for the period less any sales discounts, returns, and allowances.

• Net Income

• Net Sales

• Retained Earnings

• Net Purchases

The amount of profit made during the fiscal period before expenses are deducted; it is found by subtracting the cost of merchandise sold from net sales.

• gross profit on revenue

• gross profit on sales

• gross profit on net income

• gross profit on returns and allowances