Accounting Terms Chapter 912

Debit – Amount recorded on the left side
Primary purpose of financial accounting – Measure business transactions and communicate…
Events – refer to the happenings that affect the accounting equation and are measured.
Aggregate formula – Formula to figure out income for tax pirposes
Leasehold Improvements – Alterations or improvements to leased property such as partitions and storefronts
Matching Principle – The concept that revenues and the costs incurred in earning those revenues should be matched in the appropriate accounting periods.
cumulative dividends – if not declared this year, the board may declare this year's dividends at some point in the future
Inventory Turnover – Measure the number of times a company sells its average level of merchandise inventory during a period. Cost of Goods Sold/ Average merchandise inventory.
Double-Entry Accounting – Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit
Who wins as a result of America's policy on sugar? Multiple answers may apply so select all that you think are correct. 
assests – used to generate revenue
stuff we own
will provide future benefit to the company
net loss – total revenue is less than total expenses
assets – something that arises from a past transaction, is under the present control of the business and is of future economic benefit to the business
Whо wins аs а result оf Americа's pоlicy on sugar? Multiple answers may apply so select all that you think are correct. 
Salary – The money paid for employees services.
expenses – is any price paid for goods and services used to operatea business.
Which of these statements regarding the IFRS and U.S. GAAP is correct?

A. Both US GAAP and IFRS are considered to be "rules-based", but US GAAP tends to be more complex

B. US GAAP is considered to be "rules-based" and less detailed than IFRS

C. US GAAP is considered to be "principles-based" and more detailed than IFRS

D. IFRS is considered to be "principles-based" and less detailed than US GAAP – D. IFRS is considered to be "principles-based" and less detailed than US GAAP

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