Accounting Ii Chapter 21 Vocabulary

The period of time required to purchase good and services and turn them back into cash is called – The normal operating cycle
income statement – which financial statement is INCOME TAX EXPENSES usually found
reliability – should contain information that is free from bias
Going Concern Assumption – The assumption that the company will continue in operation for the foreseeable future
​Special Amount Column – A journal amount column headed with an account title
common stock – when a corporation issues only one class of stock, also called capital stock
Air that flows northward from the horse latitudes in the Southern Hemisphere deflects westward to produce the
Net Income appears on which financial statement(s)
A) Statement of retained earnings
B) Income statement
C) Balance sheet
D) Both A and B – D) Both A and B
Net realizable value – net amount of cash into which the asset is expected to be converted in the ordinary course of business. could generale outflows, and inflows.
revenue – An increase in owner's equity resulting from the operation of a business.
Balance sheet – A financial statement that reports assets, liabilities and owner's equity on a specific date
Aspects of an Income Statement – Revenues
-Expenses
=
Net income
net income from operations – gross profit-operating expenses
Air thаt flоws nоrthwаrd frоm the horse lаtitudes in the Southern Hemisphere deflects westward to produce the
Balance Sheet – contains information as of at a point in time
Going-concern assumption – Principle that prescribes financial statements to reflect the assumption that the business will continue operating
​Double-Entry Accounting – The recording of debit and credit parts of a transaction

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