Introduction To Accounting Final Financial Multiple Choice

greengrocer – one who sells fresh vegetables and fruit
the assets, "supplies" decreases when the supplies are used up. As the asset is used up, an expense occurs – the asset becomes an expense
Form 8K – used by publicly traded companies to disclose any material event not previously reported material that is important to investors (i.e. audit cnagers or mergers)
account – a record summarizing all the information pertaining to a single item in the accounting
Revenue Recognition Principle – Revenue is recorded when earned, not when cash changes hands.
Profit – Reward for risk taking and entrepreneurship.
shareholder/stockholders – owner of the corporation
Assumptions – 1. Economic entity

2. Going concern

3. Monetary Unity

4. Periodicity

Closing entry for Income Summary account (Net Income) – Income summary: Owner's, Capital.
Owner's Equity: Increase.
Debit and Credit.
Balance Sheet and Statement of Owner's Equity
List Temporary accounts – Fees Income, drawing, advertising expense, all expense account
Usability testing is particularly effective at determining which of the following:
Current assets are assets expected to be converted to cash, sold, or consumed: – within the nex 12 mths
Depreciation Expense – Expense
Income Statement
liabilities – Claims to a business's assets by parties external to the business
Lower of Cost or Market Rule – rule for writing down the recorded value of inventory whos market value has declined below cost. Cost in historical costand market refers to current cost to replace
3 most popular forms of prepaid expenses – Rent, advertising, insurance
Journal – Record in which transactions are entered before they are posted to ledger accounts
Usаbility testing is pаrticulаrly effective at determining which оf the fоllоwing:
adjustments: changes recorded on a work sheet to update general ledger accounts at the end of a fiscal period – adjustments: changes recorded on a work sheet to update general ledger accounts at the end of a fiscal period
Creditor – A person or business to whom a liability is owed.

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