Accounting Chapter 2

The group of accounts which you debit when increased are – Assets and expenses
GST Collected & GST Payable – GST collected = we collect from the customers
GST Paid = paid to supplier for our purchase
GST Payable/Receivable = GST Collected – GST Paid
If there is more GST collected than GST Paid = GST payable. We classified it as current liability because the business owe this amount to the ATO.
If there is more GST Paid than GST collected = GST receivable. We classified it as a current asset because the business expects to receive this from the ATO within 12 months.
sequential processing – a processing pattern in which units pass
from one process to another in a set order.
Trade discount – a reduction in the list price granted to customers
100. Enhancing qualitative characteristics of accounting information include:
A. Relevance and comparability.
B. Comparability and consistency.
C. Faithful representation and relevance.
D. Cost effectiveness and materiality. – B. Comparability and consistency.
entry – Information for each transaction recorded in a journal.
According to the article ” Nutrigenomics: Personalized Nutrition or Pie in the Sky,” Agouti mice are normally obese.
The group of accounts which you credit to increase are – Liabilities and capital
draw up a budget – einen Finanzplan aufstellen
Operating Activities – Cash increases or decreases related to current assets and current liabilities
cash payments/cash disbursements – money and money substitutes paid
Accоrding tо the аrticle ” Nutrigenоmics: Personаlized Nutrition or Pie in the Sky,” Agouti mice аre normally obese.
blank endorsement: an endorsement consisting only of the endorser's signature – blank endorsement: an endorsement consisting only of the endorser's signature
. In what order are financial statements generally prepared? – income statement, statement of retained earnings and balance sheet
Firm Fixed Price – FFP – The basis of the prime contractor's cost experience in performing the contract. This contract type places maximum risk on the vendor. It also provides maximum incentive for the vendor to control costs and perform effectively.

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