Century 21 Accounting Chapter 3

Corp ownership – evidenced by stock certificates (shares)
Expenditures – The action of spending funds.
proprietorship – an unincorporated business owned by a single person who is responsible for its liabilities and entitled to its profits
income statement – reports the revenues minus the expenses of the accounting period
Continuity (Going Concern) Assumption – Company will operate long enough to use existing assets
#41. The 2002 return on equity (ROE) is closest to: – net income divided parenthesis………parenthesis 2001 total stock equity + 2002 total stock equity parenthesis divided by 2 parenthesis
purpose of the closing entries – to prove the equality of the permanent account balances that the company carries forward into the next accounting period
What are the two major ways in which extrasolar planets have been discovered?
Asset – A resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity
20.A mutual fund – is an investment program funded by shareholders that trades in diversified holdings and is professionally managed.
Quality control costs may be a direct cost of the Manufacturing Department, but an indirect cost of an individual job. – True
double entry – every transaction in accounting that at least one debit and one credit be affected
Sanders Company has a debit balance of $7,000 in its Allowance for Doubtful Accounts before any adjustments are made. Based on a review of its accounts receivable at the end of the year, Sanders estimates that $70,000 of its receivables are uncollectible. The amount of bad debts expense which should be reported for the year is
A. $7,000.
B. $77,000.
C. $70,000.
D. $63,000. – B
Whаt аre the twо mаjоr ways in which extrasоlar planets have been discovered?
correcting entry – an entry made to correct an error in a joournal entry discovered after posting
porter – one who carries luggage at the railway station, harbour, etc.
Net Book value – _______ of an asset is the difference between its acquisition cost and accumulated depreciation its related contra account
Fair Value – An assessment based on current worth.
chart of accounts – the official list of account titles to be used to record the transactions of a business

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