Accounting I: Financial Accounting Ch 2

net realizable value of accounts receivable – receivable represents the amount of receivables a company estimates it will actually collect. The net realizable value is the face value less an allowance for doubtful accounts
adjusted trial balance – a list of accounts and their balances after all adjustments have been made
Free cash flow – Operating cash flow + investing cash flow
What side of the journal entry are Dividends Payable recorded on when a company declares a cash dividend? – Credit
CONSISTENCY – use of the same accounting principles and methods from year to year within a company. (Depreciation, Accruals, Inventory costs)
Retained Earnings – **point in time** for statement
net income – dividends
What is included in the heading of the worksheet? – Name of company, Type of report, and the date
What are the four questions asked in analyzing the adjustment on a worksheet? – 1. What's the balance?
2. What should it be?
3. How can we correct it?
4. What adjustment is made
Information – communicating information about a product
Non-current liability – A liability that is not a current liability
At the world price, domestic suppliers in France are willing to put ______ units on the market. 
Double entry bookkeeping means an entry is made: – recording equal debits and credits for a single business transaction
39.A Tobashi scheme – is a financial fraud where a client's losses are hidden by an investment firm by shifting them between the portfolios of other (genuine or fake) clients.
Over the short run, a nonlinear cost function would MOST likely result from all of the following EXCEPT:
a. quantity discounts for each additional 10,000 parts purchased
b. purchasing another $250,000 printing machine to double production
c. hiring a third production supervisor
d. incurring greater total utility costs for each machine-hour of operation – d. incurring greater total utility costs for each machine-hour of operation
Companies with a greater proportion of fixed costs have a greater risk of loss than companies with a greater proportion of variable costs. – True
journal – a record of the transaction of a business
Accrual Accounting – Revenue (which causes an increase in net worth) and expenses (which causes a decrease in net worth) should be recognized in the time period in which they occur, regardless of when the cash payment is received or made.
No Beginning retained earnings – Net income – dividends
At the wоrld price, dоmestic suppliers in Frаnce аre willing tо put ______ units on the mаrket. 
Most states do not require a business to collect tax from customers. – False
Disposal fo Asset – After fully depreciated – record cash received as salvage value, remove asset and accum. Depreciation from balance sheet, record gain (loss) on sale
sales revenue – credit balance, income statement, temporary, Revenue
relevant information – can influence a decision. it is timely and has a predictive and or feedback value
avoidable cost – cost that can be eliminated by choosing an alternative

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