Accounting I Midterm 2015

Gross profit method of estimating inventory – Estimating inventory by using the previous year's percentage of gross profit on operations
asset – can be potentially converted to cash
financial accounting – the b. acc concerned with providing external users financial information needed to make the decision
BUSINESS PROCESS – A SERIES OF STEPS THAT ARE FOLLOWED IN ORDER TO CARRY OUT A TASK IN BUSINESS
Balance Sheet debit accounts – cash, accounts receivable, supplies, automobiles, land, building and equipment
the "accounting equation" – assets (have)
=
liabilities (owe)
+
owner's equity (own) [includes profits and losses]

must ALWAYS stay in BALANCE

if you HAVE something, you either OWE for it or you OWN it

liabilities – the creditor's claim to the assets of the business.
Your LinguaMeeting coaches have been inspired by the solidarity that the UF students have demonstrated towards the situation in Puerto Rico and have come together to discuss current service opportunities in their home country. Below they will describe different situations and opportunities to collaborate with the hope that some of you will decide to come visit and volunteer with your coach. Please complete the activities below to learn more.
The proprietorship of a business may be increased by – Net income and investment of assets in the business by the owner
95. If a company has gone bankrupt, its financial statements likely violate the:
A. Periodicity assumption.
B. Monetary unit assumption.
C. Going concern assumption.
D. Economic entity assumption. – C. Going concern assumption.
Current liability – A liability satisfying any of the following (1) expected to be settled in the operating cycle (2) primarily held for trading (3) due to be settled within 12 months (4) entity doesn't have unconditional right to defer settlement
Yоur LinguаMeeting cоаches hаve been inspired by the sоlidarity that the UF students have demonstrated towards the situation in Puerto Rico and have come together to discuss current service opportunities in their home country. Below they will describe different situations and opportunities to collaborate with the hope that some of you will decide to come visit and volunteer with your coach. Please complete the activities below to learn more.
LIFO – Last In First Out; assumes company always sells the most recent items purchased; ending inventory contains the oldest items purchased
product costs – a business incurs to buy, manufacture, and deliver a good or service to a customer
Additional Paid-In-Capital – The amount received for the issuance of stock in excess of the par value of the stock.
1) delivery has occurred/services have been rendered 2) persuasive evidence of an arrangement for payment 3) price is fixed or determinable 4) collection is reasonably assured – revenue realization principle
The focus of ABC systems is on:
a. long-term decisions
b. short-term decisions
c. make-or-buy decisions
d. special-pricing decisions – a. long-term decisions

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