Accounting _

three things accounts do – determine economic transaction, identify accounts affected, journalize transactions
economic entity – States that every economic entity can be separately identified and accounted for.
Revenue Recognition Principle – The principle prescribing that revenue is recognized when earned.
When standards are used to develop a budget:
a. past inefficiencies are excluded
b. benchmarking must also be used
c. information is available at a low cost
d. flexible-budget amounts are difficult to determine – a. past inefficiencies are excluded
Accounting periods – Length of time covered by financial statements
service business – a business that does a service for customers
Income Statement – amount of revenue from sale of funeral services would be shown on the
Cash or other assets which will normally be converted into cash or consumed within one year are: – Current assets
external users – make credit and investment decisions
If a person fell down the steps and then developed pain down his anterior thigh into the knee, which of the following spinal nerves was probably damaged?  
Business entity – Business should not be concerned with investors' personal records
Continuous process management – continually improving employees, business processes, and products. Looks for what wrong and delete it.
Chart of accounts – a list of all accounts and includes an identifying number for each account
If а persоn fell dоwn the steps аnd then develоped pаin down his anterior thigh into the knee, which of the following spinal nerves was probably damaged?  
failure costs – the costs incurred by an organization because failure
activities are performed.
IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors – * Refers to accounting PRINCIPLES (eg. consistency, gc, accruals), BASES (methods for applying principles eg. use of historic cost or revaluation) and POLICIES (bases followed by a company eg. method of dep)
* Accounting policies must be applied consistently for similar transactions, changes may only occur when:
* Another IAS requires it, or;
* It will lead to more accurate/reliable information
* Changes must then be altered for previous FS

* ERRORS (numerical mistakes, mistakes in applying policies, oversignhts/misinterpretations of facts, fraud) – must be corrected if they are material

A form describing the goods or services sold, the quantity, and the price – Invoice
Liquidiity – is the ability of a firm to meet its near-term obligations as they come due. Inadequate liquidity can spell doom, even for a company with bright long-term prospects and significant noncash assets.

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