Account

*service business* – A business providing services rather than products to customers.
Statement of Retained Earnings – Reports the way that net income and the distribution of dividends affected the financial position of the company during the accounting period.
What is the profit formula? – Profit = Revenue – Expenses
If revenue is higher than expenses = net profit
It revenue is lower than expenses = net loss
accounting treatment for expenditures – depends on whether they are classified as capital expenditures, or expenses
Custodian – Person in charge of pending cash.
Purchases Journal- – a special journal used to record only purchases of merchandise on account.
Paid-in Capital – The amount of stockholders' equity the stockholders have contributed to the corporation. This includes the stock accounts and any additional paid-in capital
– Listed in the stockholders' equity section of the balance sheet
A person who signs a check or draft ordering payment to be made is called the – Drawer
If we want to plan a holiday to England, we must *take into account* that there are many rainy months. – Ha nyaralást akarunk szervezni Angliába, számításba kell venni, hogy sok esős hónap van.
Compound journal entry – An entry that affects three or more accounts (p.79)
________________ is referred to as the removal and replacement of obsolete housing; an increase in criminal activity is often seen after this process.
Modified Accelerated Cost Recovery System -used to minimize their income taxes on their tax returns – MACRS
Drawer – A person who signs a check or draft ordering payment to be made; The one who orders the bank to pay money from his account.
merchandiser equation – net sales – cost of goods sold = gross profit – expenses = net income
When do you apply or add OH to the job – always added in WIP
Received cash from charge customers to apply to account. – Cash: Accounts Receivables.
Assets.
Cash: Increases.
A/R: Decreases.
Debit and Credit.
Balance Sheet.
Standard account – Formal account. Includes columns for date, explanation, debit,credit
________________ is referred tо аs the remоvаl аnd replacement оf obsolete housing; an increase in criminal activity is often seen after this process.
Going concern – It is assumed that the business will continue to operate into the FORESEEABLE FUTURE
Posting – the process of recording information in the ledger is called
If a company fails to record estimated bad debts expense,
A. cash realizable value is understated.
B. expenses are understated.
C. revenues are understated.
D. receivables are understated. – B
Unearned Service Revenue – Liabilities

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply