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Definition
| a business entity that has one owner |
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Term
| Generally Accepted Accounting Principles (GAAP) |
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Definition
| rules, principles and concepts established by the accounting profession that govern financial accounting |
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| Financial Accounting Standards Board (FASB) |
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Definition
| a seven person group primarily responsible for the establishment of standards of financial accounting and reporting |
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Definition
| the amount a business owes to third parties |
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| International Financial Reporting Standards (IFRS) |
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Definition
| accounting standards that are developed by the international accounting standards board. |
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Definition
| The business entity concept dictates that the financial affairs of a business organization must be kept separate from the personal financial affairs of the business owner. |
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| Reliability or Objectivity Principle |
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Definition
| requires that the accounting information for a business be arrived at objectively so that it may be relied upon by outside users. |
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Definition
| States that when a business acquires assets or services, they should be recorded at their actual cost/historical cost. |
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Definition
| the amount of assets owned by the stockholders of the company |
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Definition
| records the impact of a business event as it occurs regardless of whether the transaction affected cash or not |
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Definition
| records expenses when incurred to sell goods or provide services |
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Term
| revenue recognition principle |
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Definition
| records revenue when it is earned |
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Term
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Definition
| any consecutive 12 month period |
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Definition
| receiving cash from a customer before earning it |
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Definition
| expense incurred but not paid |
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Definition
| bonds that all mature at the same time |
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Term
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Definition
| interest rate investors are willing to pay for similar bonds of equal risk |
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Term
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Definition
| unsecured bonds backed only by the good faith of the borrower |
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Definition
| amount of a bonds issue price over its maturity value |
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Definition
| bonds that may be converted into the common stock of the issuing company at the option of the investor |
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Term
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Definition
| amount of a bonds maturity value over its issue price |
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Term
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Definition
| interest rate that determines the amount of cash interest the borrower pays and the investor recieves |
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Term
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Definition
| bonds in the same bond issuance that mature at different tims |
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Term
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Definition
| bonds that the issuer may call of pay off at a specified price whenever the issuer wants |
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Definition
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Term
| accounts receivable turnover |
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Definition
| net credit sales/average net accounts receivable |
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Term
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Definition
| (cash+net current receivables+short term investments)/total current liabilities |
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Term
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Definition
| total liabilities/total assets |
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