Accounting: Debits & Credits

contra asset account – an account that is offset against an asset account on the balance sheet
Normal balance – side that increases
Chart of accounts – A list of accounts that shows the arrangement of the accounts in the ledger is called the
Simply because activity-based costing systems employ more activity-cost drivers, they provide more accurate product costs than traditional systems. – False
Business entity assumption – Principle that requires a business to be accounted for separately from its owner(s) and from any other entity
What is NOT an objective of a company's internal controls – ensure that the company is using the most effective marketing plan
additional paid-in capital – the portion if cash proceeds above par value
Things that are owned by any business organizations – Assets
cumulative dividends – if not declared this year, the board may declare this year's dividends at some point in the future
Which of the following concepts was a commonality of early Greek theories?  
Income Statement – reports an accountants primary measure of performance for a business, revenues less expenses during the period (revenues, expenses, and net income)
35.Finite risk insurance – is the term applied within the insurance industry to describe an alternative risk transfer product that is typically a multi-year insurance contract where the insurer bears limited underwriting, credit, investment and timing risk.
Cash Receipts Journal – Journal used by merchandising business to record cash received from all sources.
company should sue similar practices as the majority of th firms in the industry – industry practices exception
Use of Flexible Budget – Management uses a flexible budget at the end of the period to determine if costs were successfully controlled and to determine what factors contributed to income being different than expected.
Balance Sheet – contains information as of at a point in time
Sarbanes-Oxley Act – Created the Public Company Accounting Oversight Board, regulates analyst conflicts, imposes corporate governance requirements, enhances accounting and control disclosures, impacts insider transactions and executive loans, establishes new types of criminal conduct, and expands penalties for violations of federal securities laws. (p.9)
Which оf the fоllоwing concepts wаs а commonаlity of early Greek theories?  
Adjustment – Changes recorded on a work sheet to upgrade general ledger account at the end of a fiscal period
#12. All of the accounts of a business entity taken together comprise the: – ledger
An entry on the credit side of a liability account indicates that the account has been – Increased
FOB shipping point means that the
A. goods are placed free on board to the buyer's place of business.
B. buyer pays the freight.
C. seller pays the freight.
D. common carrier pays the freight. – B

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