Acc 211 Principles Accounting I

Cost (COGS) – A payment of cash or its equivalent for the purpose of generating revenues.
collateral – assets belonging to maker assigned as security to ensure payment of note
adjustments – changes recorded on a work sheet to update general ledger accounts at the
end of a fiscal period
dividends – Distributions (usually cash) by a corporation to its stockholders.
Increase in prepaid rent – Decrease asset
External users – Individuals and organizations outside a company. Ex : investors, creditors, taxing authorities (IRS) , Regulatory agencies(security and exchange commission SEC ) , Labor unions, customers
It is important to remember that P always means present, and F always means future.
relevance – information is useful and capable of influencing the decision of the users of the financial statements
accounts payable – amounts owed to suppliers, normally paid in 30-60 days, suppliers are those who provide inventory and services over and over again, each month
It is impоrtаnt tо remember thаt P аlways means present, and F always means future.
Monertary unit assumption – that we can express tanasatios and event in monetary, or money, units.
Net worth statement – A formal report that shows what an individual owns what an individual owes and the difference between the two
Non-manufacturing costs – Selling and administrative costs. Are period costs

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