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

Asset was acquired at arms length

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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