Accounting 610 Chapter 1

owner's equity – The owner's "interest" in the business, the equivalent to assets minus liabilities.
Electronic funds transfer – a computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents
contra asset – The allowance for uncollectible accounts
Control over Cash Receipts/ Collections of A/R – Checks received by mail (restrictive endorsement stamped on all checks received by person assigned responsibility for opening mail). Checks sent to supervisor for deposit. Supervisor sends copies of checks to Accounting Dept. for recording in accounting records.
Polictical cost – Cost imposed on an entity by regulation, taxation and public scrutiny
income – revenues less expenses
Debit – An amount recorded on the left side of a T-account
Assets – The economic resources of the entity and include such items as cash, accounts receivable (amounts owed to a firm by its customers), inventories, land, buildings, equipment, and even intangibles such as patents and other legal rights and claims.
  When a country fixes the value of its currency to a reference country, it is applying    
Cost of Goods Sold – is the term used for the cost of buying and preparing merchandise for sale
Generally Accepted Accounting Principles – GAAP
Owners equity – The amount remaining after the value of all liabilities is subtracted from the value of all assets
Statement of owner's equity – …
journalizing – form for recording transactions in chronological order
Which of the following is an equation of a variable cost function?
a. y = b
b. y = a + bX
c. y = bX
d. y = a – c. y = bX
  When а cоuntry fixes the vаlue оf its currency tо а reference country, it is applying    
Periodic inventory system – An inventory system under which the company does not keep detailed inventory records throughout the accounting period but determines the cost of goods sold only at the end of an accounting period.
14.Litigation – is the process of taking legal action.

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