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15 Cards in this Set
- Front
- Back
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What is the straight line depreciation formula?
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(Cost - Salvage Value)X (1/Useful Life)= Depreciation expense
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Define copyright
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It gives owner exclusive right to publish, use, and sell literary, music, artistic or dramatic for a period exceeding 70 years after the author's death
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Define patent
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Exclusive right granted by fed gov't for a 20 year period. Only that person can use, manufacture or sell patented item
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Define Franchise
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A contract right to sell certain products or services, use certain trademarks or perform certain activities in a specific geographical region.
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Define Licensing Rights
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Permission to use something according to specific terms and conditions
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Define Goodwill
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most frequently reported intangible asset. This asset can encompass a favorable location, an established customer base, a great reputation and successful biz operations
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Partner Return on Equity Ratio
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Net Income/Average Partner Equity
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What is the shrinkage formula?
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(Previous year + purchased inventory - COGS)-Actual inventory= Shrinkage
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What are the 5 common control principals?
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1. Establish responsibility
2. Segregate duties 3. Restrict Access 4. Document procedures 5. Independently verify |
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What is the intangible asset value formula?
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(Purchase price - Fair value)= Goodwill
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Loss due to impairment?
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Loss due to impairment (-OE)- Debit
Asset (-A) Credit |
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What is the true net revenue formula?
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Total revenue - Returns and Allowances - Sales Discounts = Net revenue
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What is the notes receivables revenue formula?
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Interest = Principal X Annual Interest X Time in Years
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What is a contingent liability?
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A liability you record when it is possible that it will occur. (e.g. a lawsuit)
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What is current long-term debt?
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Portion of long-term debt that is due in the current period.
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