Accounting Unit 2

Debit accounts receivable, credit sales – If a funeral home sells a funeral service on a 30 day account, the entry to record the transaction would be to
Capital Leases – record at PV of future payments as follows:

Lease Asset [debit to an asset account on Balance Sheet]

Lease Liability [credit to liability account on Balance Sheet]

steps in the normal operating cycle – 1. cash
2. buy materials
3. have inventory
4. sell product/ service
5. receivable
exceptional profit – wyjątkowy zysk
GAAP – requires separation of product costs and period costs
Which fund type is required to be used by a general purpose government? – General fund
In a Pew Research Center report from January 2015, 37% of U.S. adults said that genetically modified (GM) foods are generally safe to eat. The 95% confidence interval was approximately 34% to 40%. Which is the correct interpretation of the confidence interval?
Cooperative Agreement – A financial assistance mechanism used when substantial Federal programmatic involvement with the recipient during performance is anticipated.
Readity convertable cash – Quick assets
franchises – give the exclusive right to operate or sell a specific branded product. The length of the franchise is negotiated between the franchisor and the frachisee
percent of receivables method – receivables x percent
In а Pew Reseаrch Center repоrt frоm Jаnuary 2015, 37% оf U.S. adults said that genetically modified (GM) foods are generally safe to eat. The 95% confidence interval was approximately 34% to 40%. Which is the correct interpretation of the confidence interval?
SALES DISCOUNT – REDUCTION IN THE AMOUNT OF CASH RECEIVED FROM A CUSTOMER FOR EARLY PAYMENT. OFFERED BY THE SELLER AS AN INCENTIVE FOR THE PURCHASERS TO PAY EARLY.

A CONTRA ACCOUNT TO SALES REVENUE.

Periodicity assumption – The economic life of
an enterprise (presumed to be indefinite) can be
divided into artificial time periods for financial
reporting.
to follow rules – следовать правилам
Three Ways to Recognize an Expense. – 1) Pay as the expense occurs (cash)
2) Pay before the event and recognize the expense when the even occurs (prepaid expense)
3) Pay after the event has occurred (unpaid account)
Posting – A transfer of figures from the journal to the ledger

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