Accounting Unit 2

control activities – – internal controls
double declining balance – common depreciation rate for declining balance method is double the straight line rate
Posting Steps – Step 1 – Record Date
Step 2 – Enter Amount
Step 3 – Enter New Balance
Asset, Balance Sheet, Debit, Permanent – Accounts
Net worth statement – Formal report that shows what an individual owns and what they owe, and the difference
Beginning inventory + net purchases – ending inventory =: – Cost of Goods sold
Financial accounting standards board (FASB) – A Private organisation that establishes generally accepted accounting principles in the united states (GAAP)
corporation – A form of business organization that provides a separate legal entity apart from its owner or owners
Business entity – Business should not be concerned with investors' personal records
equity? give the Formula – beginning balance of equity
+stock issuances( additional investments)
+net income or -net loss
= ending balance of equity
How firms compete with each other and how they attain and sustain competitive advantage is the essence of:
Margin of Safety Percentage – Margin of Safety/Current Sales
Intangible Assets (eg's) – Goodwill
Registered trademarks
Hоw firms cоmpete with eаch оther аnd how they аttain and sustain competitive advantage is the essence of:
Deferral Adjustments – an expense or revenue has been deferred if we have postponed reporting it on the income statement until a later period
Direct Labor – Labor costs that can easily be traced to a product
accounts payable – amounts owed to suppliers, normally paid in 30-60 days, suppliers are those who provide inventory and services over and over again, each month

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