Basic Accounting Terms

Current Liabilities – Accounts payable
Salaries and wages payable
Income taxes payable
Interest payable
Earned revenue
glad to be of assistance – örülök, hogy segíthettem
9. The following comments were heard in Cornell Hall the other day. Which comment probably describes the least creative person?
1. John comes up with such "off the wall" ideas!
2. When I asked why we have to use pencils on all his exams, he said it's because that's the way it's always been done.
3. Don't get him started – Jacob has more ideas about how we should do that than the rest of us combined.
4. Janet always has to figure out how everything works. – 2. When I asked why we have to use pencils on all his exams, he said it's because that's the way it's always been done.
Describe the characteristic of understandability. – Understandability means that the financial information can be reasonably understood by it's users if the users have a reasonable knowledge of the business and a basic knowledge of accounting.
land – any property a firm owns and uses for operations
stakeholder – any person or groups who will be affected by affected by an action
Post closing trial balance – A trial balance prepared after the closing entries are posted
Footing – A small pencil figure written at the base of an amount column showing the sum if the entries in the column.
Lessor – The entity that provides the non-current asset for lease.
We can identify operating activities from income statement information and changes in: – current asset and liability accounts
All of the following are true of operating expenses except:
paid-in capital – the amount stockholders have invested in the company
asset account includes: – cash, supplies and equipment
All оf the fоllоwing аre true of operаting expenses except:
Salvage Value – The expected market value or selling price of an asset at the end of its useful life.
Cash Budget – Beginning cash balance + Expected collections – Expected disbursements +/- Financing
unit of measurement principle – The accounting principle that requires financial data to be recorded with a common unit of measure (e.g. the U.S. dollar)
Trial Balance – A work paper proving the equality of the debit and credit balances in the ledger.
Managerial Accounting – To help managers in operating. Management reports, future budgets, forecasts, historical data. Not public, only to improve managers performance.

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