Financial Accounting Chapter 1

Transaction – Where a bussiness transaction is made for goods or services
Current Ratio = – Current Assets/Current Liabilities
(Purpose of) Cash Budget – To help business determine whether the business will receive sufficient cash the business will need to seek outside financing.
Expenses – which of these does not appear on the balance sheet?
ABC systems always provide decision-making benefits that exceed implementation costs. – False
The going-concern assumption – i.
Raw Materials Inventory – Includes items acquire for the purpose of processing into finish goods.
relevance – should help users predict further events and confirm current beliefs
During your time in college, you will spend the most time taking classes that are
Calculator tape – Daily cash sales, date them by hand (T)
Classified Balance Sheet – Assets
Current assets
Short-term investments in securities
Accounts Receivable
Less: Allowance for uncollectables
Prepaid rent
Total assets
Property Plant and equipment
Periodic reports of a firm's financial position or operating results – financial statements
Prevention Costs – training, quality circles, quality engineering, audits of quality systems, statistical process control
financial statement – Reports that summarize financial data over a period of time balance sheet income statement
During yоur time in cоllege, yоu will spend the most time tаking clаsses thаt are
financial accounting standards board (FASB) – the private sector body that is responsible for establishing GAAP in the United States

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