Sales discounts and allowances – Income statement
sales revenue
Less: sales
withdrawls – assets taken out of a buisness for the owers personal use
A plant asset was purchased by the funeral home costing, $8,000. It has a useful life of 3 years and a salvage value of $2,000. Using the straight-line method of depreciation, what would be the yearly amount of depreciation? – $2,000
Benefits recieved – 'B' of business income
accounts receivable – are held by a seller and refers to promises of payment from customers to sellers, (credit sales or sales on account)
Accounts – Written records of all assets, liabilities, and OE
Modified Accelerated Cost Recovery System -used to minimize their income taxes on their tax returns – MACRS
debit – Decrease owner's equity
Consider the following example: “Paige got a ticket for littering. As a result she has to pick up trash along the highway for at least 20 hours.” This is an example of _______.
Balance Sheet – A financial statement that reports assets, liabilities, and owners equity on a specific date
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.
Business entity – A business enterprise, separate and distinct from the persons who supply the assets it uses.
List the two main circumstances when a potential component unit (PCU) should be included as part of the governmental financial reporting entity – 1) The primary government board appoints a majority of the PCU's governing board
2) The primary government may impose its will on the PCU
work sheet – a columnar accounting from used to summarize the general ledger information needed to prepare financial statements
adjusting entries – Entries required at the end of an accounting period to record internal adjustments of various accounts due to the matching principle of accounting
Assets – An asset is:
-resource controlled by the entity (PRESENT control)
-result of past events (PAST transactions)
-future economic benefits in the form of cash are expected to flow to the entity (FUTURE economic benefit)
Cоnsider the fоllоwing exаmple: “Pаige got а ticket for littering. As a result she has to pick up trash along the highway for at least 20 hours.” This is an example of _______.
Asset, Balance Sheet, Debit, Permanent – Copy Rights
Withdrawals – owner taking money from the business

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