Financial Accounting Final

Accounts often need to be adjusted because – B. many transactions affect more than one time period
Company – 1 or more owners; limited liability; continuous existence.
Define three types of business ownership structures. – The sole proprietor, partnership and corporation
AICPA – American Institute of Certified Public Accountants
Current assets – assets expected to be converted to cash, consumed or sold within 1 year or operating cycle. Which ever is longer. General used up in a year.
accounting records – organized summary of business finical acti.
An increase in proprietorship as the result of a business transaction is a/an – Income
With _____ technology, a Web server delivers information to users who have signed up for this service instead of waiting for them to request the information be sent to them.
Entity prospective – Companies are viewed as separate and distinct from their owners ( present shareholders).

The assets are viewed as assets of the company and not of the specific creditor or shareholder.

Investors have claims on assets in the form of liability or equity claims and is consistent with the present business environment.

Transparency – The transparency notion is that information provided in the financial statements and the notes accompanying them should provide a clear and accurate picture of the financial affairs of the company. The key to this idea is that of disclosure.
return on equity – sajáttÅ‘kearányos megtérülés
Long term assets – Not used up in a year.
Proprietorship – A business owned by one person.
Components of branch and group overhead – • Branch Overhead
o Supplies
o Rent
o Utilities
o Telephone
o Janitorial
• Group Overhead
o Fixed cost saves b/c increased fleet
o Area and city management
o Cost of 99
• Corporate Overhead
o St. Louis
due care – the accountant, in all activities, carrying out professional responsibilities with competence and diligence
With _____ technоlоgy, а Web server delivers infоrmаtion to users who hаve signed up for this service instead of waiting for them to request the information be sent to them.
Assets, Liabilities Equity and Net Income cannot – all be affected at the same time
carrying value – also known as the book value
entry – info for each transaction recorded in a journal

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