Unit 1 Accounting (basic Accounting Principles)

Accounting records are based on facts from source documents – Objectivity Principle
proprietorship – a business with a single owner.
The balance sheet reports – Assets and equities at a point in time
The inventory is of concern – When it is slow or slower than the previous year. When it is slower than expected for the type of goods sold or is slower than the industry norm or average
liquidity ratios – measure the short-term ability to pay maturing obligations and to meet unexpected needs for cash.
Re-classifications – The initial recording of a transaction does not result in assigning revenues to the period in which they were earned or expenses to the period in which they were incurred
Project Period – PP – The period established in the award document during which Federal sponsorship begins and ends. It may consist of one or more budget periods.
Organization Petroleum Exporting Countries (OPEC) owns the following portfolio of securities. What is the beta for the portfolio?  Company Beta Percent of Portfolio General Motors .95 40% Pepsi Cola 1.20 35% Microsoft 1.35 25%
Average Collection Period Ratio – 365/receivables turnover *shows how often collected
Employee Earnings Record – A business form used to record details affecting payments made to an employee.
accounts payable ledger – a subsidiary ledger containing only accounts for vendors from whom item are purchased or bought on account
Closing entry for expense accounts – Income Summary: Expense Account.
Owner's Equity and Expense.
Expense: Decreases.
Debit and Credit.
Income Statement.
account payable – liability created by a purchase on account
The longer the time horizon, the more likely that a cost will have a fixed cost behavior. – False
operating activities – explain the cash generated from revenue and the cash paid for expenses
Orgаnizаtiоn Petrоleum Expоrting Countries (OPEC) owns the following portfolio of securities. Whаt is the beta for the portfolio?  Company Beta Percent of Portfolio General Motors .95 40% Pepsi Cola 1.20 35% Microsoft 1.35 25%
Calculate "Net Interest Expense" – = (Gross Interest Expense) – Interest Income
Preparing for a cash surplus – …

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