Ch4 The Accounting Cycle

1930s – security act securities exchange
Disclaimer Opinion – Auditor could not obtain enough information to determine if the statements follow GAAP so no opinion is expressed
The allowance for doubtful accounts, which appears as a deduction from accounts receivable on a balance sheet and which is based on an estimate of bad debts, is an application of the – expense recognition principle
The full disclosure principle – iv.
Define – Cooperative – A c00perative is an enterprise or organization that is organized, owned and democratically controlled by the people who use it's products and services, and whose earning are distributed on the basis of use rather than an investment.
Fiscal period – The length of time for which a business summarizes and reports financial information
endorsement – a signature or stamp on the back of a check, transferring ownership
Loss on Disposal – …Is a Debit balance account.
When considering the distribution of muscle fiber types, which statement is true?
liability – amounts owed to creditors; claims of creditors to the assets of a business
Deferred Expenses – See Prepaid Expenses: Expenses that are paid for and recorded before they are used, such as rent or insurance.
When cоnsidering the distributiоn оf muscle fiber types, which stаtement is true?
Job – one distinct unit or set of units for which the costs of production
must be assigned
principles of cost – dictates that companies record assets at their cost.
balance sheet – Reports assets and claims to assets at a specific point in time
equity – the owner's claim on assets

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