Financial Accounting Ch 1 Dj

Income Statement – statement used to calculate the net profit of a business.
asset – the economic benefit is…. – using the asset to generate future cash flows or the asset itself will convert to cash
Long-term investments – Generally, (1) investments in stocks and bonds of other companies that companies normally hold for many years, and (2) long-term assets, such as land and buildings, not currently being used in operations.
Financing activities – Equity capital and borrowing
Time period assumption – Accountants assume that economic information can be meaningfully captured and communicated over short periods of time
Credit Card Statement – Monthly account showing all transactions involving a credit card.
Net Pay – take home pay after deductions
Solvency – Financial ability of a firm to meet its current debts
Depreciation Expense – Expenses
amazing – удивительно
Muslims share five core practices called:
on no account (+ kérdő szórend) – semmilyen körülmények között sem
Business ethics – The use of ethics in making business decisions
Bond – -A certificate that represents a corporation's promise to repay a certain amount of money and interest in the future
Muslims shаre five cоre prаctices cаlled:
It can be inferred that when there is a high correlation between two variables, one is the cause of the other. – False
1. Valuing assets at historical cost – From independent observability, show me that piece of paper, for checking ownership

Advantages:
Asset was acquired at arms length

Disadvantages:
Using historical cost minus depreciation values often make asset values meaningless

the income statement is for a period of time – it is NOT cumulative since the first day of business

the income statement often shows two or three comparable periods

the period of time sis typically a month, a quarter, or a year

cash payments journal – a book of orginal entry in which only cash disbursements are recorded

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