Financial Accounting: Ch 3 Adjusting The Accounts

*accounting* – An information system that provides reports to stakeholders about the economic activities and condition of a business.
Cash Short or Over Account – An account used to record any discrepancies between the amount of currency and coins in the cash register and the amount shown on the audit tape.
par value – the legal captial assigned per share of stock
owners' equity is increased/decreased by… – increased:
1. owners' investment
2. revenues
decreased:
1. dividends
2. expenses
Business entity assumption – Principle that requires a business to be accounted for separately from its owner(s) and from any other entity
Statement of Retained earnings – Total cumulative amount of reported net income less any net losses and dividends declared since the company started operating
Debit casket coach and credit accounts payable – when a funeral director buys a casket coach on credit, he would
When a corporate name such as Sony is combined with a product brand name such as Walkman, the brand category is referred to as:
note payable – A liability evidenced by a written promise to make a future payment.
franchises – give the exclusive right to operate or sell a specific branded product, the length of the franchise is negotiated between the franchisor and the franchisee
proprietorship – a business with a single owner.
related paper works – относящаяся к чему-либо бумажная работа
When а cоrpоrаte nаme such as Sоny is combined with a product brand name such as Walkman, the brand category is referred to as:
special amount column – a journal amount column headed with an account title
transaction – business that changes assets, liability, owners equity
Purchases Returns and Allowances. – A temporary owner's equity contra account utilized to record the return of merchandise to the manufacturer or supplier as the result of material defects in workmanship and/or inferior product quality.
liquidity – the ability to pay obligations expected to become due within the next year or operating cycle.
Amortization – matching costs of using intangible assets (other than Goodwill) to the periods benefitted from their use.

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