Chapter 01 Fundamental Accounting Principles

Assets, Liabilities Equity and Net Income cannot – all be affected at the same time
Conceptual Framework for Financial Reporting – ILLUSTRATION 2.7
going public – when a company puts their stock up for sale
Before the actual budget can be developed, a set of 3 assumptions must be adopted. List the 3 – How much will inflation be in the coming year?
How big of a raise do we give employees?
How much will we be raising our prices?
Retail Merchandising Business – A merchandising business that sells to those who use or consume the goods.
Accounting Equation – An equation showing the relationship among assets, liabilities , and owners equity
Most abandoned girls are believed to come from the rural areas.  
Restrictive Endorsment – An endorsment restricting further transfer of a check's ownership
Selling – Providing customers with goods and services
Mоst аbаndоned girls аre believed tо come from the rural areas.  
What does accrual accounting state regarding revenue and expenses? – Accrual accounting states that revenue and expenses should be recognized in the accounting period when they occur, regardless of when the cash payment is received or made.
purchases discount – A cash discount on purchases taken by a customer
Ideal Standards – Attained only under ideal/perfect circumstances
Statement of cash flows – A summary of the cash receipts and cash payments for a specific period of time
Opportunity Costs – the potential benefit foregone when one decision alternative comes before the other.

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