Accounting Chapter 2

net income or net profit – the amount by which revenues exceed expenses
Double- entry accounting – a financial recordkeeping system in which each transaction affects at least two accounts; for each debit there must be an equal credit.
Equity, Retained Earnings – Type and Statement for: Retained Earnings, Beginning Balance
External transaction – Involves someone outside of their company
existencias al cierre del ejercicio – stock at year end
Permanent (real) – accounts report activities related to one or more future accounting periods. They carry ending balances to the next accounting period and are not "closed."
copyrights – give the exclusive right from the U.S. Government to reproduce written work. A copyright is granted for 70 years past the life of the author
A country that wants to be able to influence its own currency must have a supply of the reserve currency. 
Par Value – An arbitrary amount stated on the face of the stock certificate. It represents the legal capital of the corporation. Stock is recorded at this amount times the number of shares of stock issued.
Revenue expenditures – Expenditures reported on the current income statement as an expense because they do not provide benefits in future periods.
Accural – describes an earning event that is recognized before cash is exchanged
withholding allowance – a deduction from total earnings for each person legally supported by a taxpayer, including the employee.
What type of account is service revenue – Credit
2 types of Accounting – Financial, managerial
Who carries the end cost of vat? – The final consumer
A cоuntry thаt wаnts tо be аble tо influence its own currency must have a supply of the reserve currency. 
A corp's net income is eventually recorded in the following stockholder's equity acct: – Retained earnings
networking – making contacts with people to share information and advice
Current Assets – Cash, accounts receivable, inventory, and other assets that are likely to be converted into cash, sold, exchanged, or expensed in the normal course of business, usually within a year.
#29. What is the owner's equity at the end of May? – $100,000 owners investment
Ramos, Inc. has monthly revenues of $30,000 and monthly expenses of $18,000, and the company paid $4,000 in dividends; therefore, net income for the month is $12,000. – True

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