Accounting Terminology
Listed Below Are Nine Technical Accounting Terms Introduced

question 106

Essay

Accounting terminology
Listed below are nine technical accounting terms introduced in this chapter: $$\begin{array} { | l | l | l | } \hline \text { Matchingprinciple } & \text { Debit } & \text { Trial balance } \\\hline \text { Double-entry } & \text { Credit } & \text { Joumal } \\\hline \text { Accounting cycle } & \text { Ledger } & \text { Consernatism } \\\hline\end{array}$$ (A.) The accounting record in which transactions are initially recorded.
(B.) A concept designed to avoid overstatement of the financial strength of a company.
(C.) A schedule prepared to determine the equality of the debit and credit amounts in the ledger.
(D.) An amount entered in the right side of a ledger account.
(E.) The sequence of procedures involved in recording transactions, processing the information in the accounting system, and summarizing the information in the form of financial statements.
(F.) The accounting record that contains a separate account for each type of asset and liability, and for each element of equity appearing in the balance sheet.
(G.) The system of accounting in which every business transaction is recorded by equal dollar amounts of debit and credit entries.

Evaluate equipment investment decisions using different capital budgeting techniques.

Understand the basic principles of capital budgeting and investment evaluation techniques.

Calculate and interpret the payback period for investment projects.

Understand and apply the concept of net present value (NPV) in investment decisions.

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Definitions:

Market Values

The prevailing price for transactions involving assets or services in the open market.

Capital Structure

The mix of different forms of financing used by a company to fund its overall operations and growth, including debt and equity.

Floatation Expenses

The costs associated with issuing new securities in the market, including underwriting, legal, and registration fees.

Book Value

The net value of a company's assets found on its balance sheet, calculated by subtracting liabilities from the total assets.