Accounting Unit 2

When a bond is issued at a lower rate of market interest than the stated rate – cash received is higher than maturity balue
All aspects of income statement –
owner's equity – the amount remaining after the value of all liability's is subtracted from the value of all assets
revenues – Einnahmen, Erlöse, Einkünfte
Cash flows from financing activities – Cash flows from transactions that affect the debt and equity of the company
Double-Entry System – An accounting system that involves recording the effects of each transaction as debits and credits.
The fibrous tunic of the eye consists of:
cash payments journal – a special journal used to record only cash payment transactions
Consigned Goods – when a company holds goods for other parties and sells them for a fee without taking ownership
never included in inventory
ex: used car dealerships
Company assumed to continue to operate in the foreseeable future – continuity assumption
The breakeven point decreases if:
a. the variable cost per unit increases
b. total fixed costs decrease
c. the contribution margin per unit decreases
d. the selling price per unit decreases – b. total fixed costs decrease
principal – the face value of a promissory note upon which interest is computed
accounting information and its internal users – -management needs to know the profitability of each division
-HR needs to know the effect of a four percent raise for all employees
-the finance department needs to know if there is enough cash to pay its expenses
An accounting entry that involves more than two accounts: – Compound journal
The fibrоus tunic оf the eye cоnsists of:
sales discount – a reduction given by a seller for prompt payment of a credit sale
Journal – The record of original entry.
purchase invoice – an invoice used as a source document for recording a purchase on account transaction

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