Financial Accounting Ch 6

Net loss – Expenses total more that revenue
To establish a petty cash fund, one would – Debit petty cash and credit cash
adusting entries – entries made at the end of an accounting period to ensure that the revenue recognition and expense recognition principles are followed.
Entity – An organization or a section of an organization that, for accounting purposes, stands apart from other organizations and individuals as a separate economic unit.
Non-Cash investing and Financing Activities – Important investing and financing activities that do not affect cash.
What is an accelerated type of depreciation method that results in more depreciation in the assets earlier years and less in its later life? – Declining Balance Method
    A crime in a pharmacy in which the pharmacist was illegally selling prescription drugs without a prescription would be classified as a(n) ____________________.
Income – Income is an INCREASES in ECONOMIC BENEFITS during the year in the form of INFLOWS or ENHANCEMENTS OF ASSETS OR DECREASE IN LIABILITIES that result in INCREASES IN EQUITY OTHER THAN THOSE RELATING TO CONTRIBUTIONS FROM EQUITY PARTICIPANTS.
E.g. fees, commission received, interest received and sales, etc.
Non current liabilities – Debts or obligations the company does not expect to pay off or satisfy within the next year
-note payable ( not due within a year)
-Any payables not due within a year
Age of accounts receivable – measures the average time required to collect receivables.
business transaction – an economic event or condiion that directly changes an entitys financial condition ordirectly affects its results of operations
footing/pencil footing – a total, written in small pencil figures, under the last entry in a column of an account
Bank service charge – a fee the bank charges for maintaining bank records and processing bank statement items for the depositor
A form describing the goods or services sold, the quantity, and the price – Invoice
    A crime in а phаrmаcy in which the pharmacist was illegally selling prescriptiоn drugs withоut a prescriptiоn would be classified as a(n) ____________________.
Intangible Assets – assets that do not have physical substance
secured bonds – specific assets of the issuer pledged as collateral

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