Accounting: Chapter 1

Control over Cash Receipts /Cash sales – use cash register tape, cash counted by someone other than the person who collected it, always have 2 people present when cash is collected and counted
(Purpose of) Statement of Accounting Policies – To show the assumptions followed in preparing the statements and how financial elements have been measure for the entity.
Inventory Cost-flow Assumptions – Specific identification, Weighted-average, FIFO, LIFO
net income – amount by which revenues exceed expenses
profit and loss account – Gewinn & Verlust
events – Happenings that both affect an organization's financial position and can be reliably measured.
What are investments? – Long-term ownerships of shares or bonds in other companies
The costs and revenues associated with two alternatives are listed below:                                    Alternative1       Alternative2 Projected revenue        $100,000            $125,000 Unit-level costs                20,000                30,000 Batch-level costs              20,000                25,000 Product-level                    15,000                15,000 Facility-level costs           10,000                10,000 Which alternative should be selected based on this information? 
examples of assets – -cash
-accounts receivable
-supplies
-land
-buildings
-trucks
Long Term Liabilities – Obligations not due to be paid within one year or the operating cycle, whichever is longer.
Hourly Rate Basis – A method of paying employees according to a stated rate per hour.
Bonds Payable – 1. Liability
2. Balance Sheet
3. Credit
4. Permanent
Medicare Tax – A federal tax paid for hospital insurance.
Income – what a person earns eg wages, salary, interest
Выпущенные долговые ценные бумаги – Debt securities in issue
The cоsts аnd revenues аssоciаted with twо alternatives are listed below:                                    Alternative1       Alternative2 Projected revenue        $100,000            $125,000 Unit-level costs                20,000                30,000 Batch-level costs              20,000                25,000 Product-level                    15,000                15,000 Facility-level costs           10,000                10,000 Which alternative should be selected based on this information? 
Journalizing. – The process of recording business transactions in a journal.
Dividends – when investors receive a portion of what the company earns in the form of cash payments

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