Financial Accounting: Ch 3 Adjusting The Accounts

Unearned Revenue – Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Current Liabilities – Are obligations that will be settle by providing cash, goods, or services within the coming year.
Perpetual inventory system – A detailed inventory system in which a company maintains the cost of each inventory item, and the records continuously show the inventory that should be on hand.
return on owner's investment – =net income/stock equity
provisionar – to set up a provision
deposit ticket/deposit slip – a bank form which lists those cash items (currency and coin) and individual checks to be deposited
88. The qualitative characteristic that says accounting information can influence users' decisions by allowing them to assess past performance is:
A. Timeliness.
B. Neutrality.
C. Confirmatory value.
D. Predictive value. – C. Confirmatory value.
Excessive conflict can erode organizational performance because of political infighting, dissatisfaction, lack of teamwork, and turnover.
Purchase Invoice – An invoice used as a source document for recording a purchase on account transaction.
Gross Profit = – Net Sales – Cost of Goods Sold
Matching concept – a primary goal of accural accounting is appropriately match expenses and revenue
What is it called when a bond is issued above face value? – Premium on Bond
File Maintenance – Procedure that includes keeping records current
Excessive cоnflict cаn erоde оrgаnizаtional performance because of political infighting, dissatisfaction, lack of teamwork, and turnover.
Sales Journal – A journal used to record sales on account of inventory.
List the five fund balance types in order of restriction – Nonspendable, Restricted, Committed,
assigned, unassigned
Petty cash – Small amount of cash kept on hand to pay for minor purchases

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