Financial Accounting Equations

Financial rights to the assets of a business – equities
cash balance per bank statement – deposits in transit and outstanding checks
Financial Position – the economic resources that a company owns and the sources of financing for those resources
rate of return on assets – measures overall profitability of assets
component percentages – the percentage relationship between one financial statement item and the total that includes that item
Historical cost – Assets are recorded at their original purchase price (acquisition cost)
Your firm intends to finance the purchase of a new construction crane. The cost is $1,650,000. What is the size of the first payment if the crane is financed over ten years with an interest-only loan at an annual rate of 8.35%?
Unearned Revenues – Cash received and recorded as liabilites before revenue is earned.
prorated – وزع بالنسب
Transfer of capital asset from GF to WF – DR asset
CR capital contribution
(GJ only in WF)
coupon bonds – DO NO record ownership
Accrued expenses – Expenses incurred in one fiscal period but not paid until a later date.
Job costing:
a. can only be used in manufacturing
b. records the flow of costs for each customer
c. allocates an equal amount of cost to each unit made during a time period
d. is commonly used when each unit of output is identical – b. records the flow of costs for each customer
Yоur firm intends tо finаnce the purchаse оf а new construction crane. The cost is $1,650,000. What is the size of the first payment if the crane is financed over ten years with an interest-only loan at an annual rate of 8.35%?
The accounting process – Identification recording communication
accumulated depreciation account is always called a – "contra account"
promissory note – a written promise made by a person or business to pay a certain sum of money to another person or business at a specified time in the future

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