Accounting: Chapter 1

Net Income – the excess of revenues over outlays in a given period of time (including depreciation and other non-cash expenses)
Bookkeeping – The procedural aspect of accounting that involves keeping detailed records of business transactions, much of which is done today by computers.
Monetary assumption – Are an universally accepted medium of exchange where they measure economic activity by a common method
accrual- basis accounting – records even if it wasn't effected by cash
Current assets – Краткосрочные активы
ARTICLES OF INCORPORATION – THE RULES APPROVED BY THE STATE THAT GOVERN THE MANAGEMENT OF THE CORPORATION
Who is in charge of the executive branch?
False – T or F: The sum of the assets and liabilities of a business always equals the investment of the business owner.
corporations disadvantages – 1. government regulation
2. corporate taxation
Cost of Goods Sold – inventory (asset) is used and an expense occurs when the inventory is provided to the customer. reported on the income statement in the same time period the revenue from the sale is reported
remain unchanged – unverändert bleiben
canceled check – a check that bears the bank's stamp, indicating it has cleared
Whо is in chаrge оf the executive brаnch?
Financial position – Create a current asset and liabilities
Strategy is formulated by answering all of the following EXCEPT:
a. Who are our most important customers?
b. Is industry demand growing or shrinking?
c. Will our external auditors certify our strategy?
d. How sensitive are purchasers to price, quality, and service? – c. Will our external auditors certify our strategy?
entity concept – account for the business, keep records separate business & personal.
The IASB's standard-setting structure includes all of the following except

A. Standing Interpretations Committee

B. Standards Advisory Council

C. Standards Comparison Committee

D. Trustees – D. Trustees

what are the 3 rules of accounting – GAAP
SEC
FASB

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