International Accounting Standards

confectioner – one who makes and sells cakes, pastries, and other sweet things.
Shift in assets – Shift in composition of assets but totally of assets stay the same
temporary accounts that DO closed – expenses
revenue
withdrawal
income summary
relevance principle – prescribes that an accounting information system report useful, understandable, timely and pertinent information for effective decision making
Social Security Tax – A federal tax paid for old age, survivors, and disability insurance.
AIS – organized means by which financial info is identified, measured, recorded and retained for use in accounting statements and management reports
Debit – accounting term that is used for the left side of the account: cash, expenses
adjusting entry – adjusts the account balances prior to preparing financial statements
Income Statement – A report of revenue, expenses, and net income or loss from operations for a specified period of time.
Which of the following is true regarding the type of rule making done by agencies?
#4. Which of the following events causes a net decrease in total assets? – payment of utilities bills not previously recorded as an obligation
Closing Entries – Journal entries that transfer the results of operations (net income or net loss) to owner's equity and reduce the revenue, expense, and drawing account balances to zero.
1. Close revenue accounts and cost of goods sold accounts with credit balances to Income Summary.
2. Close expense accounts and cost of goods sold accounts with debit balances to Income Summary.
3. Close Income Summary, which now reflects the net income or loss for the period, to owner's capital.
4. Close the drawing account to owner's capital.
Purchase Invoice Information – – Credit Purchase
– Decrease GST Liability
tests of debt service – debt-to-networth ratio is from _
Which оf the fоllоwing is true regаrding the type of rule mаking done by аgencies?
True of False:

The S.E.C designates the FASB as the organization to determine accounting standards for all public companies – True

6th step of Accounting Cycle – post journal to general ledger

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