Accounting 2301 First Exam

balance sheet – a financial statement that reports assets, liabilities, and owners equity on a specific date
double entry accounting – demands the accounting equation remain in balance – 2 or more accounts are involved – total amount debited must equal the total amount credited
Fiscal Year – A fiscal period consisting of 12 consecutive months
The MAJOR challenge when planning fixed overhead is:
a. calculating total costs
b. calculating the cost-allocation rate
c. choosing the appropriate level of capacity
d. choosing the appropriate planning period – c. choosing the appropriate level of capacity
Net income – the amount of revenue that remains after expenses for the period are subtracted.
investing – use of capital to purchase long-term assets and/or generate additional income
Equity – owner's claim on assets such as common stock, retained earning and dividends
 Find the surface area of the given figure.
account form – the form of balance sheet that resembles the basic format of the accounting equation, with assets on the left side and liabilites and owners equity sections on the right side.
accounting is used to…. – accumulate financial data
measure financial performance
communicate financial info
T-ACCOUNT – SUMMARY DEVICE THAT IS SHAPED LIKE A CAPITAL "T" WITH DEBITS POSTED ON TEH LEFT SIDE AND CREDITS ON THE RIGHT SIDE. A "SHORTHAND" VERSION OF A LEDGER
Franchises & Licenses – Granted by private business or Gov. Purchaser has right to sell product or service w/ conditions. Chains & Sports Teams. Indefinite life
issues stock to raise capital – debit cash, credit common stock, credit paid in capital common stock
¬†Find the surfаce аreа оf the given figure.
Non-cancellable lease – A contract to occupy property that cannot be cancelled
postdated check – A check that has a future date instead of the actual date; it should not be deposited until the date on the check.
Purchase discount – A cash discount claimed by a buyer for prompt payment of a balance due.
The only time the debit side of the revenue account is used is when you make – Closing entries
Budget – An estimate of revenue & probable expense for a given period of time is a

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