Financial And Managerial Accounting Chapter 1 Terms

investing – use of capital to purchase long-term assets and/or generate additional income
compound journal entry – an accounting entry that involves more than two accounts
SEC – securities exchange commission

requires public companies to follow GAAP

provides requirements for additional operational and financial information be provided as necessary

violation of SEC requirements is a violation of law

Answerability – Sanctions must be coupled with this. Those who have the obligation to deliver should also have a binding duty to answer questions and explain themselves when things go wrong.
selling expenses – expenses that are incurred directly in the selling of merchandise.
cost of merchandise sold – the total original price of all merchandise sold during a fiscal period
Liability – One: a present obligation exists and the obligation of a settlement in the future. Two: it has adverse financial consequences as the entity is obligated to sacrifice economic benefits.
Three roles of cash – commodity, liquidity, money capital
Accounting – The processing and communication of financial information to enable economic decisions to be made.
Accumulated Depreciation – Normal Balance: Credit
Type of Account: Asset
Financial Statement: BS
In the small intestine, _____ from the _____ breaks starch into maltose.
Withholding Statement – See Wage and Tax Statement, Form W-2: Preprinted government firm that contains information about an employee's earnings and tax withholdings for the year.
Venture Capital firms – Firms that buy a portion of ownership of the company
mercadería de reventa – goods for resale
public accounting firms – provide the service of reviewing financial reports and providing an opinion whether or not the financial statements are presented in conformity with generally accepted accounting principles ("audit")
Bond Issuance (when bonds are sold)
If $20M bond, 1% discount, with 2% admin fee – DR Cash $19,400,000
DR Expenditure $400,000
DR Other Financing Use $200,000
CR Other Financing Source $20,000,000
In the smаll intestine, _____ frоm the _____ breаks stаrch intо maltоse.
Capital Stock – Total shares of ownership in a corporation.
Securities and Exchange Commission (SEC) – A governmental agency that requires companies to file financial reports in accordance with generally accepted accounting principles.

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