Accounting I: Financial Accounting Ch 1

49. Nina Corp. had the following net income (loss) the first three years of operation: $7,100, ($1,600), and $3,600. If the Retained Earnings balance at the end of year three is $1,100, what was the total amount of dividends paid over these three years?
A. $500.
B. $0.
C. $9,100.
D. $8,000. – D. $8,000.
What will cause owner's equity to < – Net loss
Current liability – An obligation that is reasonably expected to be satisfied within one year
cost effective – kostenwirksam
T Account – a skeleton form of an account used for instructional purpose.
auditor's reprot – a professional accounting firm examines the company's financial statements and gives a report that determines if the statements are fairly stated in accordance with GAAP
accounting system – a planned process for providing financial information that will be useful to management.
partnership – a business owned by two or more individuals; the organization form often used by accounting firms and law firms.
accrual method – transactions are recorded in the period to which they relate, regardless of when cash is exchanged
The result of the process of inspiration is…
Contribution margin ratio – CMR= (Selling price – Variable costs)/selling price
expenses – Decrease in retained earnings that results from operations; the cost of doing business; opposite of revenues.
Items recorded that increase income when using the fair market value method are – dividends received
productos terminados y productos en proceso – finished goods and working process
When actual input data from past periods is used to develop a budget:
a. past inefficiencies are excluded
b. expected future changes are incorporated
c. information is available at a low cost
d. audited financial information must be used – c. information is available at a low cost
Define accounting process – Six major steps of the accounting process are analyzing, recording, classifying, summarizing, reporting and interpreting
gross receipts – Bruttoeinnahmen
The result оf the prоcess оf inspirаtion is…
cost principle – we don't value historical
Profit Center – Main Function of the business

Controls revenues and costs but does not control investments

Term describing the handing in of petty cash vouchers for cash – Replenish
The amount of income from the sale of funeral services would be shown on which formal financial statement? – Profit and Loss Statement
calendar mouth – Kalendermonat

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