Chapter 1 Introduction To Accounting

overdraft – this happens when a check is written for more money than is deposited in the account
TEST!! Propor authorization – Signing
electronic funds transfer: a computerized cash payments system that uses electronic impulses to transfer funds – electronic funds transfer: a computerized cash payments system that uses electronic impulses to transfer funds
owners drawings – temporary account, OE, debit
NonCurrent Assets – (long-term) assets (building, land, equipment)
accounting information and its internal users – -management needs to know the profitability of each division
-HR needs to know the effect of a four percent raise for all employees
-the finance department needs to know if there is enough cash to pay its expenses
Buy on account – A common business practice in which business buy items and pay for them at a future date.
Payments – an amount of money leaving the business
Financial statements – A document with the bussiness profits and financial position for external parties
capital – another term for owner's equity-the amount of which the business assets exceed the business liabilities
Feedback affects individual, but not group performance.
principal – the amount borrowed (loan)
Unearned Revenue – Current liabilities
What is the Accounting Equation? – Assets = Liabilities + Owners Equity
Feedbаck аffects individuаl, but nоt grоup perfоrmance.
days in inventory – 365 / inventory ratio
dishonored checks – A check that a bank refuses to pay
Carriage on purchases – Delivery charges

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