Intro To Accounting 20653 Exam 1 Laurie Wood Tcu

The strategy MOST likely to reduce the breakeven point would be to:
a. increase both the fixed costs and the contribution margin
b. decrease both the fixed costs and the contribution margin
c. decrease the fixed costs and increase the contribution margin
d. increase the fixed costs and decrease the contribution margin – c. decrease the fixed costs and increase the contribution margin
Deferrals – Adjusting entries for either prepaid expenses or unearned revenues.
Expense – A decrease in owner's equity.
NON-VALUE ADDED ACTIVITIES – ACTIVITIES THAT CUSTOMERS ARE NOT WILLING TO PAY FOR BECAUSE THEY ADD NO VALUE
(Purpose of) Statement of Accounting Policies – To show the assumptions followed in preparing the statements and how financial elements have been measure for the entity.
ACCOUNTING CYCLE – PROCESS BY WHICH COMPANIES PRODUCE THEIR FINANCIAL STATEMENTS FOR A SPECIFIC PERIOD
What are the five components of internal control? – The five compnentts of internal control, as discussed in Internal Control-Integrated Framework (Committee of Sponsoring Organizations of the Treadway Commission), are
1. the control enviornment,
2. risk assessment,
3. control activites,
4. information and communication, and
5. monitoring. pp 8
Drawee – a person or concern, usually a bank, that has been ordered to make payment on a check or draft is called the
Total Assets = – Total Liabilities + Total Stockholder's Equity
net income from operations – gross profit-operating expenses
Blue discoloration
capital expenditure – additions & improvement – asset account
cash
allowance for doubtful accounts – Balance sheet
Less: of assets
balance brought forward – übertragender Saldo
Scrap and rework are considered to be the same thing by managerial accountants. – False
(Purpose of) Cash Budget – To help business determine whether the business will receive sufficient cash the business will need to seek outside financing.
journal – chronological record of all transactions that occur in a business
Blue discоlоrаtiоn
Liquidity – The ability a firm has or the ease a firm has to convert an asset to cash if needed
Credit Card Sale – A sale in which a credit card is used for the total amount of the sale at the time of the transaction.

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply