Weisinger Accounting Ch 5

Bookkeeping – The accounting process includes _______________the function
8. An audit of a company's financial statements requires that the auditor
1. use deductive logic because the auditor must form an opinion after looking at all of the company's transactions for the time period represented on the company's financial statements
2. use deductive logic because the auditor must make a judgment about the company's financial statements after sampling the company's transactions for the time period represented on the company's financial statements
3. use inductive logic because the auditor must form an opinion about the company's financial statements after looking at all of the company's transactions for the time period represented on the company's financial statements
4. use inductive logic because the auditor must make a judgment about the company's financial statements after sampling the company's transactions for the time period represented on the company's financial statements – 4. use inductive logic because the auditor must make a judgment about the company's financial statements after sampling the company's transactions for the time period represented on the company's financial statements
Assets – property or rights that provide probable future economic benefit ex: cash, inventory, equipment, accounts receivable, office supplies, land, bldgs, patent
Historical Cost – more certain less relevant
Indirect costs – Косвенные затраты
Account number – the number assigned to an account
closing journal entries – journal entries that are prepared to reduce or clear all temporary accounts to a zero balance or update capital to a new balance
Bad Debt Expense – Is the expense associated with estimated uncollectible account receivable.

Bad debt expense xxx
Allowance for doubtful accounts xxx

Identify the green-yellowish gas that is used as a disinfecting agent.
Interim periods – Monthly and quarter time periods
Required minimum ROI – Required Income/Average operating assets
Balance sheet – Financial statement that reports assets, liabilities, and owner's equity on a specific date
Special amount column – a journal amount column headed with an account title
Identify the green-yellоwish gаs thаt is used аs a disinfecting agent.
accounting – the information system that measures business activities, processes that information into reports and financial statements, and communicates the results to decision makers.

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