Accounting Chapter 5

Federal income tax withholding – the amount that an employer must withhold from an employee's pay for income tax purposes.
The International Accounting Standards Board (IASB) mission – To develop a single set of high quality, understandable and international financial reporting standards (IFRSs) for general-purpose financial statements (GPFS)
cost-benefit constraint – benefit information is greater than the cost of gathering information
The number of units in the sales budget and the production budget may differ because of a change in:
a. finished goods inventory levels
b. overhead charges
c. direct material inventory levels
d. sales returns and allowances – a. finished goods inventory levels
transaction – exchange of one thing for another
Financial Accounting – Info to investigators or creditors by financial statements of historical info & financial position
limited liability company (LLC) – A business form consisting of one or more persons or entities filing an operating agreement with a state to conduct business with limited liability to the owners, yet treated as a partnership for tax purposes.
Source document – Cash Receipts: Evidenced that a cash inflow has occurred.
Cheque butt: Evidence that a cash outflow has occurred.
Invoice: Evidenced that a credit transaction has occurred. (Either a credit sale or credit purchase.
Memo: Evidence of transaction between the business and owner or if there are no other documents available.
A balance sheet shows: – D. Assets, Liabilities, and Stockholders' Equity
General & administrative expenses – depreciation expense
office & admin expense
property tax expense
rent expense
This  bulletin board is composed of a rectangle and a semicircle.  Find the outer perimeter of the bulletin board.  Express the answer in terms of 
Profit margin – Measures the percentage of sales that end up as profit. Helps with pricing strategies and competition in intensity. Example discount retailer has low profit margin and a high end jeweller has a high profit margin
Common Stock – Number of stocks issued to stockholders
This  bulletin bоаrd is cоmpоsed of а rectаngle and a semicircle.  Find the outer perimeter of the bulletin board.  Express the answer in terms of 
Debit Balance – a condition that occurs when the total of the debits in an account is larger than the total of the credits in that account.
All of the following statements are true regarding convergence of U.S. GAAP with IFRS except:

A. IFRS tends to be less stringent in its disclosure requirements than U.S. GAAP.

B. The IASB has looked to the United States to determine the structure it should follow in establishing IFRS.

C.Foreign companies that trade shares in U.S. markets are required to reconcile their accounting with U.S. GAAP under these convergence efforts.

D.The standard-setting structure for IFRS is very similar to the standard-setting structure in the United States – C.Foreign companies that trade shares in U.S. markets are required to reconcile their accounting with U.S. GAAP under these convergence efforts.

Net Worth – An individual's personal contribution in the household.
Net Worth = Personal Assets – Personal Liabilities.
materiality – reasonably likely to impact the decision-making of those who are using the accounting data or financial reports
Face of note – the principal sum the maker of a note promises to pay.

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