Financial Accounting Equations

temporary accounts – are kept for each period and then transfer the balances of revenues, expenses and dividends to the retained earnings account.
Integrity – An important quality of accounting information that allows investors, creditors, management, and other users to rely on the information.
Debit – An amount recorded on the left side of an account
Current assets – Краткосрочные активы
free enterprise system – people are free to produce the goods and services they choose.
prepaid expense – cash paid for an expense in one fiscal period that is not used until a later period
Materiality assumption – A piece of information is said to be material if it's omission or misstatement could influence the economic decisions of uses made on the basis of the financial statements
Double-object pronouns–question 2 Remember: you are not answering questions here. You are supplying the correct indirect and direct object pronouns to complete the accurate rewrite of the prompt sentence. To help you, in the prompt sentence, the indirect object pronoun is in italics, and the direct-object noun phrase is in bold purple. ¿Los exámenes? La profesora Suárez nos va a devolver los exámenes mañana. La profesora Suárez [l1] va a devolver mañana.
Journal – Record in which transactions are entered before they are posted to ledger accounts
Point-of-Sale (POS) Terminal – A computer used to collect, store, and report all the information of a sales transaction.
Indirect Method – For preparing the operating activities section of the statement of cash flows, the approach in which the net income is reconciled to net cash flow from operations.
debit Income Summary, credit the Retained Earnings – Income Summary has a credit balance of $12,000 after closing revenues and expenses. The entry to close Income Summary is:
To what does the phrase on account refer? – Buying items or services and paying for them at a future date
Receipts – income received from the sale of goods and/or services; also, slips of paper documenting a purchase
Dоuble-оbject prоnouns–question 2 Remember: you аre not аnswering questions here. You аre supplying the correct indirect and direct object pronouns to complete the accurate rewrite of the prompt sentence. To help you, in the prompt sentence, the indirect object pronoun is in italics, and the direct-object noun phrase is in bold purple. ¿Los exámenes? La profesora Suárez nos va a devolver los exámenes mañana. La profesora Suárez [l1] va a devolver mañana.
Additional Problem # 3. Retained earnings at December 31, 2001 – retained earnings + net income minus dividends
rectificación de las declaraciones juradas del impuesto a las ganancias efectuadas en 2000 – ammending income tax returns filed for the 2000 period
list 3 reasons that readers of financial statements are better off now than they were before 1929 – better accuracy
more disclosure
less fraud
maker of the note – the customer and borrower who will pay the interest and principal

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