Accounting

undepreciated cost – book value
depreciation – the process of allocating the cost of an asset to expense over its useful life
procedimiento de consolidación – consolidation procedure
international rule makers – IASB
Any person who agrees to perform a service for a fee and is not subject to the control of those whom he services is called: – Independent contractor
capital account – an account used to summarize the owners equity of a business
Double entry – Basic accounting theory is based on
accurate – conforming exactly or almost exactly to fact or to a standard or performing with total accuracy
events – Happenings that both affect an organization's financial position and can be reliably measured.
A shallow groove on the surface of the cerebrum is called a(n)
Financial Statements – summary of financial condition and operations
Accounting Cycle Step 1 – Accounting Cycle: Step to analyze transactions. Analyze source documents to determine their effects on the basic accounting equation.
Service revenue – Revenue accounts
Bank Reconciliation – deposit in transit – subtract out deposit for accurate answer.
A shаllоw grооve on the surfаce of the cerebrum is cаlled a(n)
Presented below are three different transactions related to materiality. Explain whether you would classify these transactions as material.

(a) Blair Co. has reported a positive trend in earnings over the last 3 years. In the current year, it reduces its bad debt allowance to ensure another positive earnings year. The impact of this adjustment is equal to 3% of net income.

(b) Hindi Co. has an extraordinary gain of $3.1 million on the sale of plant assets and a $3.3 million loss on the sale of investments. It decides to net the gain and loss because the net effect is considered immaterial. Hindi Co.'s income for the current year was $10 million.

(c) Damon Co. expenses all capital equipment under $25,000 on the basis that it is immaterial. The company has followed this practice for a number of years. – A. Yes
B. Yes
C. No

Debt Ratio – Ratio of total liabilities to total assets; used to reflect risk associated with a company's debt.
Depreciation – Is the process of allocating the cost of buildings and equipment over their productive lives using a systematic and rational method.

Depreciation Expense xxxx
Accumulated Depreciation xxxx

writing off specific receivables – -the company will write off a receivable when it is determined the amount will not be collected
-write off will not affect expense or total receivable

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