Index
80/20 rule
defined, 10
inventory turnover and, 61, 148
A
accelerated depreciation, defined, 42
accountants, defined, 10
accounting, defined, 10
accounting periods, defined, 10
accounts, defined, 10
accounts payable
balance sheet, recording on, 37
as current liability, 73
defined, 10
worksheet, recording on, 39-40, 65-66
accounts receivable
average collection period, explained, 58-60
as current asset, 71
defined, 10
working capital, relationship with, 57
worksheet, recording on, 41, 65
accrual method of accounting, 139
cash method versus, 6-7
defined, 10-11
accrued expenses. See also salaries
as current liability, 73
defined, 11
acid test
calculating, 135
when to use, 150
Acme Widget Company example
balance sheets (first year)
constructing ...
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