Accounting Chapter 2

Equities – financial rights to the assets of a business
Name 2 Examples of transaction – Ex. Most common transaction at shop is the sale of goods
Ex. Paying 600$ for advertising
Equities – the owner's claims of the assets against the liabilities. It is the value of the business that they own.
Fixed Costs – Total cost does not change because volume changes (within relevant range); The cost per unit does change as volume (number of units) changes; Ex: Salaries, P/R taxes on salary, insurance, rent, property taxes, depreciation;
Cash equivalents (3 months) – Money market funds, Treasury bills, Certificates of deposit
When are Revenues and Expenses reported on the income statement? – In the period they are EARNED or INCURRED [NOT when cash is paid or received]
La familia Select the appropriate relative that corresponds to the description. El hijo de mi hermano es mi [1]. La tía de mi hijo es mi [2]. La madre de mi padre es mi [3]. El hermano de mi padre es mi [4]. El padre de mi sobrina es mi [5]. El hijo de mi tío es mi [6].  
Chart of Accounts – table of contents
13. Transactions of a company that include the purchase and sale of long-term productive assets are referred to as:
A. Investing activities.
B. Financing activities.
C. Expenditure activities.
D. Operating activities. – A. Investing activities.
Lenders – Persons or organisations that permit the temporary use of money
Cost Principle – value of accounts are shown according to the actual costs, not the current value (which would include the expense of depreciation).
Lа fаmiliа Select the apprоpriate relative that cоrrespоnds to the description. El hijo de mi hermano es mi [1]. La tía de mi hijo es mi [2]. La madre de mi padre es mi [3]. El hermano de mi padre es mi [4]. El padre de mi sobrina es mi [5]. El hijo de mi tío es mi [6].  
Loss from Selling a Plant Asset – If cash received is LESS than book value

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