Chapter 01 Fundamental Accounting Principles

JOURNALING – process of recording transactions in the journal
fixed asset – any tangible resource that is expected to be used in the normal course of operations for more than one year and is not intended for resale
deposits in transit – add bank
Certain cost necessary to operate a business – Expenses
Acid test ratio (quick ratio) – quick assets divided by current liabilities.
Schedule if accounts payable – A listing of vendor accounts, account balances, and total amount due all vendors
Materiality – Concerns the relative size of an item and its effect on decisions.
Define Surplus (And deficit) – Surplus (or Deficit) is the amount by which revenues exceed expenses (or expenses exceed revenues) for the period. The amount is taken from the personal income statement. A surplus increases net worth and a deficit decreases net worth.
Debit rent expense & credit cash – The payment of rent by cash is recorded as
Food labels MUST list the amounts of which types of lipids?
Sales – …Is a Credit balance account.
When a bond is issued at a discount – the amount of interest expense is greater each period
Classified Financial Statement – A format by which revenues and expenses on the income statement, and assets and liabilities on the balance sheet, are divided into groups of similar accounts and a subtotal is given for each group.
Equation for Assests – Assets = Liabilities + Common stock + Retained earnings – Dividends + Net profit + Minority interest
Posting – the procedure of transferring journal entries to the ledger accounts
Fооd lаbels MUST list the аmоunts of which types of lipids?
TEST!! Sales discount – Discount for paying early

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply