Accounting Basics

the postings at the end of the month from the purchase journal are entered into the – account payable ledger
merchandise purchase ledger
Freight in ledger
Account balance – The amount that is in an account
Current Assets – Are assets that will be used or turned into cash within one year.
Negotiable – A financial instrument whose ownership can be transferred to another person or business.
Corporation – a business firm whose articles of incorporation have been approved in some state
Job costing:
a. can only be used in manufacturing
b. records the flow of costs for each customer
c. allocates an equal amount of cost to each unit made during a time period
d. is commonly used when each unit of output is identical – b. records the flow of costs for each customer
Explain how the segregation of duties serves as a major control for safeguarding cash – Requires that the person who has physical custody of the cash not be the same person who does the record keeping for cash
operating profit & loss – üzemi tevékenység eredménye
Revenue – money received (or to be received) from having SOLD a product or PERFORMED a service
To have standing to sue, a party must have a sufficient stake in a matter to justify seeking relief through the court system.​
Business ethics – The use of ethics in the making of a business decision.
Cash Basis of Accounting – Revenue and expenses are recorded when cash changes hands
Entries made at the conclusion of a fiscal period to bring accounts up to date are called: – Closing
Gains – These are similar to revenues; however, they result from incidental transactions (such as the buying and selling of a fixed asset) rather than from operating activities.
Tо hаve stаnding tо sue, а party must have a sufficient stake in a matter tо justify seeking relief through the court system.​
Inventory – Units produced x % x cost x amount
Accounts Receivable Turnover – (Sales Revenue/ Ave. Accounts Receivable)
Matching – match revenue owned for that period to when the expense is incurred.

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