Acc 211 Principles Accounting I

Raw materials – Basic goods that will be used in production but have not yet been placed in production.
accounting equation – Assets = Liabilities + Owners Equity
Master budget – A number of budgets that map out a companies goals.

Culminates in cash budget, budgeted income statement, and budgeted balance sheet

credit – amount recorded on the right side
Calculate "Total Capital" – = Long-term debt + Short-term debt + Common & Preferred equity
List some of the Users of the information provided by an accounting system. pp. 7 – 1. Investors
2. Creditors
3. Managers
4. Owners
5. Customers
6. Employees
7. Regulators: SEC, IRS, FTC
A point at which revenue equals expenses. – Break Even
net sales – total sales less sales discount and sales returns and allowances
Cite personal communications that are not archived or recoverable
26.Revenue recognition – includes reporting of untrue sales, inaccurate timing of the amount of income, and untrue amount of revenue.
Inventory Turnover – (Current Year COGS)/((BI + EI)/2)
*Important to turn over at a reasonable rate
365/Inventory Turnover gives how many days for turnover
property – is anything of value that is owned or controlled.
Petty Cash slip – A form showing proof of a petty cash payment.
When sales tax is collected as cash we must transfer this entry into the: – cash payments journal
Notes Payable – A written promise to pay a creditor a certain amount in the future.
Cite persоnаl cоmmunicаtiоns thаt are not archived or recoverable
An internal auditor reconciling the bank statement monthly is an example of
A. segregation of duties.
B. independent internal verification.
C. establishment of responsibility.
D. documentation procedures. – B
Interest payable – This liability account shows future interest payments that a company must make for using somebody else's money.
permanent account – accounts used to accumulate information from one fiscal period to the

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