Century 21 Accounting Chapter 1

revenue – money coming into the business
Personality – an individual's characteristic pattern of thinking, feeling, and acting
What are the steps for preparing a trial balance on a worksheet? – 1. Write acc. title
2. Record debit and credit balances
3. Draw a single line at the bottom
4. Add the totals
5. Write totals
6. Draw a double line at the bottom
weighted average – cost of available-for-sale units divided by number of units available
Issuance of interim reports is an example of what primary ingredient of relevance? – Timeliness.
segment margin – Best profitability measurement for manager's performance
posting – transferring information from a journal entry to a ledger
debit – An amount recorded on the left side
This work held what type of power?
Cash Basis Accounting – Accounting in which income and expenses is recorded when cash is spent and received.
FASB – Financial Accounting Standards Board.
finished goods inventory – manufactured items that are completed and ready for sale
Capital – : the account used to summarize the owner's equity in a business
This wоrk held whаt type оf pоwer?
Accelerated Depreciation Method – Method that produces larger depreciation charges in the early years of an asset's life and smaller charges in its later years
Times Interest Earned and formula – The ratio shows the amount of resources generated for each dollar of interest expense.

Times Interest Earned = (Net Income + Interest Expense + Income Tax expense) / Interest Expense

Revenue Recognition Principle – Revenue is recorded when earned, not when cash changes hands.
Asset, Balance Sheet, Debit, Permanent – Prepaid Rent

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