Basic Accounting Math

withholding allowance – a deduction from total earnings for each person legally supported by a taxpayer, including the employee.
t-account – simplified presentation of an account, shape like a T.
Costs to produce an item – Direct labor, Direct materials, traceable MOH.

(Ignore sunk costs, don't use PDOHR)

The financial statement that represents activity over the entire life of the company – Balance sheet
Under a periodic system, the company uses separate accounts to record freight costs, returns, and discounts.
A. True
B. False – TRUE
Uses of Income Statement – Risk, Operating Capability, Financial Flexibility
Expenses & withdrawls of assets from the business by the owner – The proprietorship of a business may be decreased by
Events, as distinguished from actions, would include:
Similarities between GAAP & IFRS – IFRS is based on the same four characteristics of information as stated in GAAP (relevance, reliability, understanding, and comparability) Also, the basic principles and assumptions of GAAP are aligned with those of IFRS.
T-account – Tool used to show the effects of transactions and events on individual accounts
fiscal year – a year in the life of a business, may or may not coincide with the calendar year
Direct Cost – Costs easily and conveniently measured and traced to ONE product; Direct materials and direct labor are direct costs
Events, аs distinguished frоm аctiоns, wоuld include:
events – Happenings that both affect an organization's financial position and can be reliably measured.
portfolio – a collection of stocks that is owned by an investor

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