Unit 1 Accounting (basic Accounting Principles)

Intangible Assets – Assets have special rights but not physical substance.
Three Organizations that is development of financial Accounting Standards (GAAP) – 1. Securities and Exchange Commission (SEC)

2. American Institute of Certified Public Accountants (AIPA)

3. Financial Accounting Standard Board (FASB)

Federal income tax withheld – single/married; claiming financially; number of allowances
statement of owner's equity – explains changes in equity from net income (or loss) and from any owner investments and withdrawals over a period of time.
Income Statement – reports an accountants primary measure of performance for a business, revenues less expenses during the period (revenues, expenses, and net income)
miller – one who owns or works in a mill
When machine-hours are used as an overhead cost-allocation base and the unexpected purchase of a new machine results in fewer expenditures for machine maintenance, the MOST likely result would be to report a(n):
a. favorable variable overhead spending variance
b. unfavorable variable overhead efficiency variance
c. favorable fixed overhead flexible-budget variance
d. unfavorable production-volume variance – a. favorable variable overhead spending variance
T/F: The difference between assets and liabilities is equity – T
financing activities – Activities that obtain from investors and creditors the cash needed to launch and sustain the business; a section of the statement of cash flows.
chart of accounts – A list of accounts used by a business
________, the first significant dramatist to emerge in the Elizabethan period, established blank verse as the medium of dramatic expression.
memorandum – a brief written message that describes a tranaction
Revenue, Sales represents what? – It represents the top line. This is money that is coming in from customers.
net income – or net earnings (often called the bottom line) is the excess of total revenues over total expenses
internal auditing – practice of auditing within a company by employees of the company
What is in an income statement? – Revenues and expenses
Working capital – Current assets-current liability
________, the first significаnt drаmаtist tо emerge in the Elizabethan periоd, established blank verse as the medium оf dramatic expression.
transaction – A business activity that changes assets, liabilities, or owner's equity
Net sales – Less: Sales returns, sales allowances, sales discounts
debit – Paid utilities bill: ________ utilities expense
Bonds payable – Balance Sheet
Long-term liab.

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