Chapter 1 Introduction To Accounting

lenders – include suppliers and financial institutions that lend money to companies
Basic activities of businesses – Financing, investing, operating
Low current ratio – using resources efficiently
variations – zmiana, odchylenie
Cost Principle – value of accounts are shown according to the actual costs, not the current value (which would include the expense of depreciation).
Account Balance – the amount in an account
Account numbers – The number assigned to an account
accumulated depreciation-buildings – plant asset-contra, BS, credit
Transaction – An event that can change the status of the financial position of the business
What is debit/credit to Stockholders Equity – – +
Which of the following is not a reason followers become part of the in-group?
The lump sum budgeted for fixed overhead will always be the same amount for the static budget and the flexible budget. – True
Invoice – Счет-фактура
Buying Treasury Stock Transaction – Assets and equity decrease by an amount equal to the cost of treasury stock purchased
Term Deposit – INV(investment)
financial accounting standards board – the authorative body that has the primary responsibility for developing accounting principles
Which оf the fоllоwing is not а reаson followers become pаrt of the in-group?
Goodwill – The excess of the purchase price of the company over the market value of its net assets. Only recorded when an entire company is purchased
– Debit goodwill: tells investors that we knowingly overpaid for a good reason (ability to add value)
– Not amortized bc the goodwill of many entities increases in value
independent internal verification – principle of internal control
Stockholder – The holder or person owning stock in a corporation is the

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