Financial Accounting Ch 7

Posting – the process of transferring information from the general journal to individual general ledger accounts, the fourth step in the accounting cycle.
payee – the company will receive the principal an interest
contra liability – HST refundable
depreciation – allocating the cost of an asset to expense in the periods that benefit from its use
property rights – creditor's or owner's financial claims to assets of a business
what are the 4 statements – income statement, statement of returned earning, balance sheet, statement of cashflow
Which of the following is an advantage to stating the bad news at the beginning of the message?
variable costing – Product cost=DM+DL+VOH (no FOH)
start-up – negative or very low cash flow from operating activities, negative cash flow from investing activities, and large fluctuations in cash flow from financing activities
What are the 3 balance sheet accounts? – Assets, liabilities, and Owners Equity
Financial Accounting Standards Board (FASB) – privately funded organization with the primary authority for establishing accounting standards in the U.S.
Adjustments – changes recorded on a work sheet to update general ledger accounts at the end of a fiscal period
Insurance Expense – …Is a Debit balance account.
Funds – Money to operate the business coming from
1. ?? contributed by investors (owners)
2. Borrowing money
Which оf the fоllоwing is аn аdvаntage to stating the bad news at the beginning of the message?
Return on assets – net income/ average total assets
4 – What step in the accounting process is Trial Balance?
What is affected by an increase in revenue? – More cash, more accounts receivable, or less unearned revenue.
1st the revenue
2nd a balance sheet account changes

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