Accounting Chapter 2

In preparing closing entries: – B. each expense account will be credited.
Facilities and Administrative (F&A) Costs – Costs that are incurred for common or joint objectives and, therefore, cannot be identified readily and specifically with a particular sponsored project, an instructional activity, or any other institutional activity. They are synonymous with Indirect Costs.
Going concern – Is that the company will continue to exist for the foreseeable future
Opening An Account – Writing an account title and number on the heading of an account
LIFO – most recent purchases are sold first and charges to cost of goods sold
comparability – ability to compare the accounting information of different companies because they use the same accounting principles
Financial Accounting Standards Board (FASB – the most important body for developing rules on accounting practice. designated by the securities and exchange commission to issue the statement of financial accounting standards
What is the first threat to life from a massive third-degree burn?
debt to equity – Indicates how much the firm is relying on debt or equity for its funding. Too high means it's relying too much on that funding and may be vulnerable to interest rate increases
secured bonds – specific assets of the issuer pledged as collateral
The revenue recognition principle dictates that revenue should be recognized in the accounting records – B. When it is earned
Whаt is the first threаt tо life frоm а massive third-degree burn?
growth stock – stocks that tend to have higher price earnings ratios and are expected to have higher future earnings
declaring a dividend – action by a board of directors to distribute corporate earnings to stockholders

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