Accounting Terms

6. measures loss in value of asset, annual expense listed in income statement under expenses
7. revenue - expenses = ______
8. specific for expense they incur
10. can be easily converted into cash in short amount of time
13. daily expenses incurred in operation of running business
14. expense items that can't be clearly associated with particular product/function
15. recording, reporting, and analysis of financial transactions according to accepted principles
16. liabilities + owner's equity = ______, items of value a company owns
18. required contribution for support of national, state, or local government based on income
19. initial investment in business and retained earnings invested into business, assets - liabilities = ____________
20. all expenses incurred in running business

1. can be easily converted into cash in one calendar year
2. net sales - cost of goods sold, doesn't include operating expenses or income taxes
3. obligations of one company to another
4. gross profit - total operating expenses
5. help identify source of revenue
9. amount of money business earns after paying income taxes
11. amount of revenue generated by business, total sales - product returns + sales discounts
12. costs directly associated with making or acquiring products
17. land, buildings, machinery, vehicles