Accounting Unit 2

financial accountants – provide information used to determine the use of excess money
FOB Destination – seller pays the shipping charges and owns the merchandise until it is delivered to the buyer
The account Sales Discount increases sales. – False
under-applied overhead – a debit balance in the manufacturing overhead account that occurs when the amount of overhead cost actually incurred exceeds tha amount of overhead cost applied to work i process during a period
Analyzing. – Determining the fundamental significance of business transactions so that financial information may be properly processed.
36. Accountants are responsible for measuring various operating, investing and financing activities. Which of the following correctly matches the activity with its type?
A. Investing – paying utilities for the month.
B. Investing – purchasing land.
C. Operating – paying dividends to stockholders.
D. Financing – selling equipment for cash. – B. Investing – purchasing land.
What accounts are extended to the income statement ? – Expense accounts and revenue accounts
accounting records – Organized summaries of a business's financial activities
How do budgets differ to actual reports – Budget Reports:
– reports future events
– focus on what might happen
– are estimates or predictions
Actual Reports:
– reports historical events
– focus on what has already happened
– actual, verifiable data supported by a source document.
Selling/Admin Costs – Costs that are not included in inventory. They are sometimes called period costs.
Which of the following is an instrument payable to cash or whoever is in possession of the instrument?
estado de flujo de efectivo, estado de origen y aplicación de fondos – statement of cash flows
Receipt – a form that serves as a record of cash received.
Compound interest – Computed on original principal and interest payments
interest receivable/accrued interest – current asset
Journal entries are required by the depositor for all of the following except
A. collection of a note receivable.
B. an NSF check.
C. bank service charges.
D. bank errors. – D
Dishonored check – a check not paid by the bank when properly presented.
Which оf the fоllоwing is аn instrument pаyаble to cash or whoever is in possession of the instrument?
interest – face value x interest rate x portion of year
Last-in, first-out (LIFO) method – an inventory costing method that assumes that the latest unit purchased are the first to be sold
Accounting equation – An equation showing the relationship among assets, liabilities, and owner's equity.
Why do accountants use a worksheet ? – To prepare financial statements
cost of goods sold – amount of resources used to purchase or produce the goods that were sold during the reporting period

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