Basic ecomonic terminology. Искренко Э.В - 42 стр.

       15. Profit equation — profits equal revenue minus expenses.
       16. Owners’ equity — the difference between a firm’s assets and
its liabilities; what would be left over for the firm’s owners if its
assets were used to pay off its liabilities.
       17. Accrual — the princi ple in accounting that means that afirm
charges off expenses only in the accounting period (usually the calendar
year) and not necessarily in the period in which the actual cash
payment was made.
       18. Double-entry bookkeeping — a system in which each
financial transaction is recorded as two separate accounting entries
to maintain the balance shown in the accounting equation.
       19. General journal — a book of original entry in which typical
transactions are recorded in order of their occurrence.
       20. General ledger — the book in which all the accounts of a
business using double-entry bookkeeping are contained.
       21. Posting — the process of transferring journal entries to the
general ledger.
       22. Trial balance — a summary of the balances of all general
ledger accounts at the end of the accounting period.
       23. Balance sheet (statement of financial position) — a summary
of a firm’s assets, liabilities, and owners’ equity accounts at a particular
time, showing the various money amounts that enter into accounting
equation.
       24. Accounting software package — a set of computer programs
designed for solving various problems of accounting.
       25. Certified public accountant (chartered accountant in BrE) —
an accountant who has fulfilled the legal requirements of his or her
state of knowledge in accounting theory, practice, auditing, and law
and who is licensed to sign financial reports.
       26. Capital stock — the original investment of the stockholder-
owners.
       27. Revenues — are the funds received by a business, mainly
from the sales of goods and services.
       28. Gross profit — the difference between net sales and cost of
goods sold.
       29. Sales forecast — a prediction of what sales will be over a
certain period of time.
       30. Profit (net income, earnings) — the difference between
total revenues and total expenses.


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