Financial Accounting Ch 6

Sale on Account – A sale for which cash will be received at a later date.
Accounts – are used to organize or group transactions to facilitate financial statements preparation
Bond payable is always reported as – depends if it is short term or long term but is a liability
Financing activities – Transactions involving external
sources of funding.
Relevance – Useful information has predictive and feedback value.
corporation advantages – 1. separate legal entity
2. limited liability of stockholders
3. transferrable ownership rights
4. continuous life
5. lack of mutual agency for stockholders
6. was of capital accumulation
This monument was dedicated by Constantine.  
Relevance – financial information that is capable of making a difference in a decision
Accounts receivable – the total amount of money owed to a business
non-current liabilities – debts which will not have to be paid back in the next year
Stock – looking at finances at a specific moment in time
This mоnument wаs dedicаted by Cоnstаntine.  
Common Stock – Term used to describe the total amount paid in by stockholders for the shares they purchase.

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