Accounting 100

Account – summary of the information regarding one part of the accounting equation
Creditor – One to whom money is owned.
separate entity assumption – states that a business's activities are accounted separately from those of its owners.
Allowance for bad debts (allowance for doubtful accounts) – a contraasset account utilized to accumulate totals against accounts receivable.
consistency – A concept that relates performance assessments over time.
Account Balance – The amount in an account
The direct write-off method
A. is acceptable for financial reporting purposes.
B. debits Allowance for Doubtful Accounts to record write-offs of accounts.
C. shows only actual losses from uncollectible accounts.
D. estimates bad debt losses. – C
When estimating a cost function, cost behavior can be approximated by a linear cost function within the relevant range. – True
Prepaid Expenses – Asset
company pays before used
DR +
Which of the following is an implicit cost of production?
Non-cancellable lease – A contract to occupy property that cannot be cancelled
to run a company – управлять компанией
Which оf the fоllоwing is аn implicit cost of production?
double declining balance – an accelerated method, which causes more depreciation expense to be recognized in the early years and less in the later years
annual fiscal statement – reports covering a one year period

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