Accounting Basics

Correcting entry – an additional journal entry, used to correct an incorrect journal entry
income statement – summary of revenue & expenses for a specific period of time
Expense – decrease in assets or an increase in liabilities resulting from operating activities undertaken to generate revenue
40.Corporate governance – involves regulatory and market mechanisms, and the roles and relationships between a company's management, its board, its shareholders and other stakeholders, and the goals for which the corporation is governed.
Merchandiser Product Costs – 1.aquisition cost 2. freight charges 3.sales taxes and insurance 4.labor & other costs due to processing at time of sale
Financial
Accounting
Standards
Board (FASB) – a private sector body of accounting professionals. PROVIDES ACCOUNTING GUIDANCE
Code of Conduct – A statementthat guides the ethical behavior of a company and its employees
Replacement cost – The current amount to purchase a similar item
Investing – involve acquiring the resources necessary to run the business
Rewrite the sentences to include indirect object pronouns. Mariana trae la ropa. (to you, pl.)
Long-term Notes Payable – Long-term Liability
Depreciation expense – the amount of depreciation taken during the current fiscal year is properly termed
Auditors – Trained individuals hired by a company as an
independent party to express a professional opinion of the
accuracy of that company's financial statements.
1. time period assumption
2. cost pinciple
3. monetary unit
4. entity
5.going concern – 1.annually , quarterly , monthly SEC REQUIREs this
2. remain at their original cost (referred
to as "historical cost"). recorded dollar amount paid or recieved(how much money from long term asset)
3.only transactions that have economic value are entered into the company's accounting records. current currency
4.only transactions of the company itself are recorded
for the company – that is, financial information of the company is reported separately from its owners.
5.is not in the process of liquidation and will continue to operate
indefinitely into the future
Rewrite the sentences tо include indirect оbject prоnouns. Mаriаnа trae la ropa. (to you, pl.)
Accounting cycle – the process involved in journalizing, posting to the ledger, taking a trial balance, preparing statements, making adjusting and closing entries, and preparing a postclosing trial balance.
normal cost system – an approach that assigns the actual costs of
direct materials and direct labor to products but uses a predetermined
rate to assign overhead costs.

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