Intro To Accounting 20653 Exam 4 Laurie Wood Tcu

Gross Profit – the excess of net sales over the cost of goods sold
bull – an investor who gambles on selling stock at higher price
organization chart – traces the line of authority for a typical corporation
Purchase discount – a cash discount claimed by a buyer for prompt payment of a balance due
What can be Classified as Inventory – items held for sale; items in process of production or sale; goods used in the production of goods to be sold (raw material goods)
Owner investments – Assets put into the business by the owner
An Audit – An audit does not prove that financial statements are 100% accurate. The audit opinion states the financial statements are not materially misstated in accordance with GAAP. It is not a statement regarding how good or bad the company will perform in the future. It lends credibility to the statements when an independent third party reviews the statements.
26.Revenue recognition – includes reporting of untrue sales, inaccurate timing of the amount of income, and untrue amount of revenue.
________ is not a basic activity of the revenue cycle.
Accrued Expenses – [Also called accrued liabilities] Used when cash is paid in a period AFTER receiving services provided to the company. Liabilities owed in the course of business that are not repeat purchases. Accrued means "Not yet paid"
Creditors – -anyone to whom the business owes money (usually suppliers and banks)
Service Commitments – Government policy papers, service delivery plans and national targets for the country or a district as well as politicians promises are all what are known as commitments. Commitments are promises that the state, government officials and politicians have made to citizens. Knowing what these commitments are is important for accountability work. It is another thing you can check up on. See if the promises have been delivered on. Remember that government commitments to service delivery also imply that services will be provided equally to women and men.
________ is nоt а bаsic аctivity оf the revenue cycle.
Before the actual budget can be developed, a set of 3 assumptions must be adopted. List the 3 – How much will inflation be in the coming year?
How big of a raise do we give employees?
How much will we be raising our prices?

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