Accounting Chapter 5

Financing activities – Borrowing, settling, paying back
When a company pays cash in June to a vendor for goods purchased in May, the transaction will – decrease accounts payable and decrease cash
partnership disadvantages – agree with someone, everyone affected for loss
Common stock decreases with – Debit
Accounts Payable – Current Liability
cash-basis accounting – accounting basis in which a company records revenue only when it receives cash and an expense only when it pays cash
A watershed moment for global oil markets occurred what cartel organized an embargo?
Retained earnings – =sum (all net incomes)- Sum (all dividends paid out)
B-beginning retained earning
A-net income
S-dividends, pref. stock, common stock
E-ending retained earnings
The proper sequence for the accounting cycle is – A. analyze, journalize, post, adjust, prepare statements, close.
file maintenance – The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current
proving the journal – a process which examines each page of a journal, confirming that the debit entries equal the credit entries on each page
capital integrado – paid in capital
contra account – An account that reduces a related account on a financial statement.
A wаtershed mоment fоr glоbаl oil mаrkets occurred what cartel organized an embargo?
petty cash – An amount of cash kept on hand and used for making small payments

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