Accountingcentury 21

investing activities – purchase of resources a company needs to operate
Sales return – Resulting in a decrease in the vendors accounts recieveable, is called a sales return
Merchandise Inventory – Normal Balance: Debit
Type of Account: Asset
Financial Statement: BS
(on Financial statements)statement of changes in stockholders equity – Investments by and distributions to owners during the period
liabilities – arising from expenses include accounts payable, interest payable, wages payable, sales taxes payable, and income taxes payable.
Credit (Cr) – The right side of a T-account.
Proprietorship – One owner, no red tape (unless hire employees) Maybe business license. Maybe state sales tax if selling. No separation Of business & personal legal liability. No separate income tax.
Alfred Wegener supported his theory of continental drift by
Payment of Cash Dividend Effects – Decrease assets
Decrease liabilities
No effect on stockholders' equity
SEC – Securities and Exchange Commission
Term Deposit – INV(investment)
owners' equity – Financial interest of the owners of a business in that business – equal to assets minus liabilities
current ratio – current assets/ current liabilities
Alfred Wegener suppоrted his theоry оf continentаl drift by
Intangible Assets (Non-Current Asset) – Assets that have no physical presence but represent an investment by the firm.
E.g. goodwill, trademark and patents.
Cash Payments Journal – Journal used by merchandising business to record all disbursements of cash.
Accounts Payable – 1. Liability
2. Balance Sheet
3. Credit
4. Permanent
Revenue Realization Period – Record revenues when earned and measurable (delivery of goods or services has occurred, there is persuasive evidence of an arrangement for customer payment, the price is fixed or determinable, and collection is reasonably assured).

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