Accounting Chapter 9 Vocabulary

Certified public accountant (CPA) – An individual who has met certain criteria and is thus allowed to perform audits of corporations
bonds payable – long term amounts owed to investors
John Smith is employed as a local funeral home and is paid on an hourly rate of $5.00 per hour. He is also paid time and a half for any hours worked in excess of 40 hours per week. For the current pay period, he worked a total of 60 hours. If his FICA tax is 6%, and his withholding is 10%, what is his take-home pay for the week? – $294.00
5. Financial accounting:
A. Provides information primarily for external decision makers.
B. Provides information primarily for a company's employees.
C. Provides information primarily for the use of managers of the company.
D. Is primarily used to compute a company's tax obligation. – A. Provides information primarily for external decision makers.
Maintaining a separate account for sales discounts provides business managers with information to evaluate whether a sales discount is a cost-effective method. – True
Return on Shareholders Funds –
sole proprietorship – An unincorporated business entity that is owned by a single individual.
Which of the following glands contribute to the production of saliva
A debit entry to an account
A) Increases assets
B) increases Liabilities
C) increases stockholders equity
D) both A and C – A) Increases assets
purchase discounts are: – credits to merchandise purchase account
Time period – Record transactions and events for standard time
Which оf the fоllоwing glаnds contribute to the production of sаlivа
Qualitative Characteristics: What are the Characteristics? – 1. Fundamental Qualities
A. Relevance
B. Faith representation

2. Enhancing qualities

Retained Earnings – The amount of stockholders' equity the corporation has earned through profitable operations and has not used for dividends
-Totally separate from the company's cash account
-Increased by net income, decreased by dividends/net loss
velocity – the number of units that can be produced in a given period
of time

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