Acc 211 Principles Accounting I

P/E Ratio – stock price/ Earnings per Share
Fair value Principle – Assests and liabilities should be reported at fair value ( the price received to sell an asset or settle a liability
Dividend – Income distributed to shareholders
Finished goods inventory – Manufactured items that are completed and ready for sale.
TEST!! Sales allowance – Give them discount for error
Who carries the end cost of vat? – The final consumer
Finish good inventory – consists of completed or finished product that have not been sold.
Accounting – System that collects and processes (analyzes, measures, and records) financial information about an organization and reports that information to decision makers.
Under a perpetual inventory system, when goods are purchased for resale by a company
A. purchases on account are debited to Inventory.
B. purchases on account are debited to Purchases.
C. purchase returns are debited to Purchase Returns and Allowances.
D. freight costs are debited to Freight-out. – A
junk bonds – high rate of interest- high credit risk
Large losses were generated by Thai banks when they had to repay loans that they had taken from another country. This was because the number of Baht trading for 1 USD had increased substantially. And banks had to be repaid in USD. 
permanent or real accounts – accounts whose balances are carried over to the next accounting period- assets, liabilities, capital
#25. ● purchased inventory for $18,000 on credit
● issued capital stock for $10,000 cash
● purchased equipment for $7,950 cash – XYZ Company's total assets would:
increase by $28,000 + 18,000 + 10,000
Lаrge lоsses were generаted by Thаi banks when they had tо repay lоans that they had taken from another country. This was because the number of Baht trading for 1 USD had increased substantially. And banks had to be repaid in USD. 
Net Present Value Method – used to compare the present value of cash inflows to the present value of cash outflows at a given required rate of return. Establishing a present value for all cash flows allows a comparison of cash in and cash out in equivalent dollars.
ratained – zatrzymane, zakumulowanie
Fiscal year – An accounting year ending on some date other than December 31st is called
What must be done if a transaction increases the left side of the accounting equation? – The right side must be increased
Return on assests – ROA – is stated in ratio form as income divided by assets invested.

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