Accounting Chapter 4 Vocabulary

Is input vat always reclaimed in full by VAT registered companies? – Usually yes, but there are some exceptions, ex. entertainment
all revenue accounts have a – credit balance
Independent contractor – any person who agrees to perform a service for a fee and who is not subject to the control of those for whom the service is performed.
book keeping – mechanical and repetitive; it is the process, usually through the use of computers, of recording financial transactions and keeping financial records. small but important part of accounting
Withdrawal – Assets taken out of a business for the owners personal use
Depreciation Expense – Decreases the asset and decreases equity
Which of the following would not be found on an authorization document?
Budget – Short and long term plan of action for the future operating activities of a business
checking account – a bank account frome which payments can be orded by a depositor
Which оf the fоllоwing would not be found on аn аuthorizаtion document?
tax services – Provide help in preparing and filing of tax returns and the rendering of advice on the tax consequences of alternative actions.
interest revenue – money received for interest
Fiscal year – an accounting year ending on some date other than December 31st is called
current maturities of long-term debt – Balance Sheet
Current Liab.
The percentage-of-sales basis of estimating uncollectibles
A. produces a better estimate of cash realizable value.
B. results in a better matching of expenses with revenues.
C. emphasizes balance sheet relationships.
D. considers the existing balance in Allowance for Doubtful Accounts. – B

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