Accounts, Debits And Credits

Note payable longer than a year – Non current liabilties
What are the steps for proving the adjustments columns of a worksheet? – 1. Draw a single line
2. Total up the debits and credits
3. Draw a double line
Multiple step income statement – An income statement that shows several steps in determining net income.
Permanent Account – An account that is kept open from one accounting period to the next.
Essential characteristics of accounting – 1. identification, measurements, and communication of financial information.

2. economic entities

3. interested parties

The usual difference between accounts payable and notes payable is – Explicitly stated interest
Use of Flexible Budget – Management uses a flexible budget at the end of the period to determine if costs were successfully controlled and to determine what factors contributed to income being different than expected.
TEST!! Account petty cash is – Asset (Credit)
What type of bond can be converted into common stock if the bondholder elects to? – Convertible bonds
One card is selected from a deck of cards. Find the probability of selecting a red card or a king,
Prepaid expenses – Assets that result from the payment of expenses that benefit more than one accounting period.
Accrued revenues – Revenues earned in a period that are both unrecorded and not yet received in cash; adjusting entries for recording accrued revenues involve increasing assets and increasing revenues
2 categories of equity – common stock
retained earnings
accounting records – organized summaries of a business' financial activities.
One cаrd is selected frоm а deck оf cаrds. Find the prоbability of selecting a red card or a king,
Accounts payable – The money your business owes to others
Consumer market – all customers who purchase goods and services for personal use

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