Fin: Ch 1: Accounting Information For Decision Making

Permanent Accounts – Accounts used to accumulate information from one fiscal period to the next
Accounting Cycle – To identify, analyze record, and summarize transactions.
Interim financial statements – Financial statements covering periods of less than one year; usually based on one, three, or six month periods
Plant and Equipment – Property that will be used in the business for longer than one year.
balance sheet is initially reported at… – balance sheet is initially reported at historical cost – fair market value on the date of the transaction (buy the asset or borrow money)
Statement of cash flows – reports cash receipts and cash payments classified according to the entity's major activities: operating, investing, and financing.
cash flow from investing activities – include those related to the acquisition or sale of the company;s plant and equipment investments
The anatomical position is characterized by all of the following except ________.
5. Which of the following statements is true regarding sole proprietorships, partnerships, and corporations?
1. Legally, a corporation is considered to be separate from its owners, but for accounting purposes, the results of the corporation's activities and the owner's activities are consolidated into one set of financial statements
2. Partners are responsible for the debts of the partnership in proportion to their individual contributions to the company.
3. Sole proprietorships are the most highly-regulated companies because there are more of them than there are partnerships and corporations.
4. Corporations get more press from the business media than sole proprietorships and partnerships because their sales revenues are much higher and because they control a lot more of the world's resources. – 4. Corporations get more press from the business media than sole proprietorships and partnerships because their sales revenues are much higher and because they control a lot more of the world's resources.
CONTRAAA ACCOUNT – an account that is an offset to, or reduction of
current – رائج ، متدفق ، حالي
The аnаtоmicаl pоsitiоn is characterized by all of the following except ________.
Sales Invoice – a bill recording a sale on account
E,S,G&A Expenses – Expenses thatare not directly traceable to a specific product. Examples are advertising, administrative salaries and insurance, among others.
adjusting entries will never… – affect cash or capital
owners equity – the amount remaining after the value of all liabilities is subtracted from the
value of all assets

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