Acc 211 Principles Accounting I

. Which of the following is not a source of data for the cash budget?
a. The sales budget.
b. The purchases budget.
c. The budgeted income statement
d. The general and administrative budget. – c. The budgeted income statement
credit, debit column – Haben-, Sollspalte
net loss – when expenses exceed revenues
T account – title-debit on left-credit on right
assets – economic resources owned or controlled by the business
Unemployment Insurance Program – A program that provides unemployment compensation through a tax levied on employers.
check – verify by consulting a source or authority
Working Capital = – Current Assets – Current Liabilities
AUDIT – Is an examination of the financial reports to ensure they represent what they claim and report with GAAP
If an organization begins to decline after moving to total quality it should return to its traditional approach.
International Accounting Standards Board (IASB) – Group that identifies preferred accounting practices and encourages global acceptance issues International Financial Reporting Standards (IFRS)
current assets – assets that companies expect to convert to cash or use up within one year or the operating cycle, whichever is longer
Statement of stockholders' equity – A financial statement that summarizes the changes in stock-
holders' equity over an interval of time.
If аn оrgаnizаtiоn begins tо decline after moving to total quality it should return to its traditional approach.
Conversion cost – consist of direct labor and factory overhead cost
How can a business generate a cash surplus despite suffering a net loss? – We calculate Cash by: Cash Payments – Cash Receipts. (We can earn a cash surplus by having Cash Receipts than Cash Payments)
We calculate Loss by: Expenses – Revenue (We can suffer a net loss as well because the business had more Expenses than Revenue)
However not all Cash Receipts are Revenue and not all Cash Payments are Expenses
(Example of the contribute to a cash Surplus but will not have any effect on Net Profit – eg. Loan, Capital Contributuon, A GST refund
Net working capital – Excess of current assets over current liabilities

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