When Your New Jersey Based Mail-Order Computer Company Sells to a Customer

question 43

True/False

When your New Jersey based mail-order computer company sells to a customer in Illinois,the Uniform Commercial Code UCC)will establish the legal requirements that your firm must follow.

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Definitions:

Prior Period Adjustment

A correction of errors in previously issued financial statements to reflect accurate past financial information.

Retained Earnings

Profits that a company has chosen to reinvest in the business rather than distribute to shareholders as dividends.

Earnings Per Share

A financial ratio representing the portion of a company's profit allocated to each outstanding share of common stock.

Net Income

The total earnings of a company after subtracting all expenses and taxes from total revenue, representing the company's profit.