Accounting Chapter One Vocab

4 inventory cost methoods – FIFO, LIFO, Weighted av. cost, specific ID
Credit – Right hand side of a leadger
Depreciation expense – that portion of the original cost of a fixed asset that is assigned as an expense to the reporting period expected to benefit from its use.
Accrued expenses are – C. Incurred but not yet paid or recorded
temporary accounts – accounts used to accumulate information until it is transferred to the
owner's capital account
capital reserve – tÅ‘ketartalék
Cash and other assets that can be reasonably expected to be converted to cash, used up, or sold within one year or less – Current assets
True – A withdrawal decreases owners equity
Financial Statements – Revenue and expense balances from the adjusted balance sheet go on the IS that determines the income for that accounting period.
Income from the IS and equity from adjusted trial balance make the SE this determines the overall equity.
Balance sheet had all the adjusted balances from the IS and SE accounts together and provides accurate FS
What is the role of caretaker genes?
The accounts receivable turnover ratio is computed by dividing
A. total sales by average net accounts receivable.
B. net credit sales by average net accounts receivable.
C. total sales by ending gross accounts receivable.
D. net credit sales by ending gross accounts receivable. – B
Accounting is a system for providing financial information. List 2 principle elements – -Financial Accounting
-Managerial Accounting
Merchandise Available for Sale – beginning inventory plus net purchases
Whаt is the rоle оf cаretаker genes?
memorandum – a brief written message that describes a tranaction
Step 4 – Step of Closing Process: Close the drawing account to owner's capital.
Bookkeeping – The accounting process includes _______________the function
NOT-FOR-PROFIT – ORGANIZATION THAT HAS BEEN APPROVED BY THE INTERNAL REVENUE SERVICE TO OPERATE FOR A RELIGIOUS, CHARITABLE, OR EDUCATIONAL PURPOSE.
salaries payable – current liabilities

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