Accounting General Journal, 9e: Chapter 01

GAAP – Generally Accepted Accounting Principles – specify acceptable practices
Total Asset Turnover – Measure of a company's ability to use its assets to generate sales. Computed by dividing net sales by average total assets
Owners equity – The difference between assets and liabilities. The amount the business owes to the owner. Also the key amount invested by owners and profit/loss from the operations of the business.
principles of cost – dictates that companies record assets at their cost.
Truthfulness – Consistently telling the truth; honest
Balance sheet – A financial statement that presents
the financial position of the company on a particular
Economic Entity Assumption – The economic activities of a company can be accumulated and reported in a manner that assumes the company is separate and distinct from its owners or other business units.
Which of the following would not be an example of how microorganisms positively impact industry and the environment?
Corporation – A publicly or privately owned business entity that is separate from its owners and has a legal right to own property and do business in its own name; stockholders are not responsible for the debts or taxes of the business.
credit – An amount recorded on the RIGHT SIDE of a T-account
trial balance – a proof of the equality of debits and credits in the general ledger
Common Stock – Capital stock that provides voting rights and rights to earnings after dividends are distributed to preferred stockholders.
liability – an obligation of a business
Which оf the fоllоwing would not be аn exаmple of how microorgаnisms positively impact industry and the environment?
balance sheet – List of an entity's assets, liabilities, and owners' equity as of a specific date. Also called the statement of financial position.
In a perpetual inventory system, which of the following would be debited when goods are purchased with the intent of being resold?
A. Cost of Goods Sold.
B. Inventory.
C. Purchases.
D. Accounts Payable. – B
IAS2 Inventories – * Requires inventories are valued at the lower of cost and net realisable value
* COST – purchase price + any costs incurred to bring product to where it is
* NRV – estimated selling price – costs necessary to bring product into a selling condition

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