Accounting Unit 1

Accrual-basis accounting – Follows the GAAP, recognizes revenues and expenses in the PERIOD IN WHICH THE EVEN OCCUR RATHER THEN RECEIVED OR PAYD IN CASH
Classified balance sheet – A type of balance sheet that groups together accounts of similar nature and reports them in a few major classifications
Adjusted Trial Balance. – The trial balance taken after adjusting entries have been recorded.
trail balance – a work paper proving the equality of the debit and credit balances in the ledger
Depreciation – a synonym for fair wear and tear of a durable asset is
merchandising business – a business that purchases and sells goods
annual report – Document distributed to share holders and other interested parties that contains financial statements , notes to the financial statements
Monetary aggregates are
balance sheet – list of assets, liabilities and owner´s equity, specific date usually end of year
Working Capital – Current assets – Current liability
Which of the following must be added to the beginning retained earnings to compute ending retained earnings? – net income
Debit Balance. – A condition that occurs when the total of the debits in an account is larger than the total of the credits in that account.
operating activities – the activities associated with the day to day operations of the business (provide goods or services to customers and associated costs)
butcher – one who slaughters animals, cuts them up, and sells the meat.
Depreciation Expense – the periodic expense created by allocating the cost of plant and equipment to the periods in which the are used
Mоnetаry аggregаtes are
corporation – An organization with the legal rights of a person and which many persons may own
Estimated Liabilities – Known obligation of an uncertain amount, but one can be reasonably estimated.

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply