Unit 1 Accounting (basic Accounting Principles)

Other expenses – expenses incurred that are not the direct result of regular trading activities of a business.
Monetary Unit Assumption – Principle that assumes transactions and events can be expressed in money units.
Journalizing – Process of recording transactions in a journal
Days in Inventory – 365/ Inventory Turnover Ratio
Current liability – one which will be paid, using current assets, in one year or less
net profit – Another name for net income.
To harden a project is to
anything of value that is owned – asset
Balance Sheet (financial statements) – describes a company's financial position (type and amounts of assest, liabilies and equity) at a point in time.
Audit – Analysis and report of an organization's accounting system, its records, and its reports using various tests
Salvage value – Estimate of amount to be recovered at the end of an asset's useful life.
Cash – Normal Balance: Debit
Type of Account: Asset
Financial Statement: BS
Tо hаrden а prоject is tо
future value – value at a later date of a single sum that is invested at compound interest

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