International Accounting Standards

non-cumulative dividends – if not declared this year, the board may not declare in the future
Company assumed to continue to operate in the foreseeable future – continuity assumption
Multi-Step Income Statement – contains subtotals to highlight significant relationships. In addition to net income, it reports gross profit and operating income.
partnership – A form of business ownership in which two or more people share the assets, liabilities, and profits.
Allocable Costs – Those allowable costs that actually benefit the grant or contract to which they are being charged.
Adjusting Entries – Needed whenever revenue or expenses affect more than one accounting period. Involves a change in an expense, revenue, asset, or liability.
Securities and Exchange commission (SEC) – all publicly traded corporations must report periodically to this; set up by congress to protect the public, regulates the issuing, buying, and selling of stocks in the US
General Purpose of Cash Budgets – 1) Cash Budgets which show all expected "estimated cash receipts" and "estimate less cash payment." It then calculates the firms expected "estimated cash surplus (deficit)" for the budget period and it's expected "estimate bank balance at end" of the budget period
Which of the following statements regarding the process for determining a partnership's tax year-end is true?
Cost of goods sold – Income statement
Less: Net sales revenue
Withdrawal – Assets taken out of a business for the owners personal use
revenue and expenses – transferred to income summary
Postclosing Trial Balance – A statement that is prepared to prove the equality of total debits and credits after the closing process is completed.
Which оf the fоllоwing stаtements regаrding the process for determining а partnership's tax year-end is true?
equity – an owner's claim on the company; what's left after the bills are paid
GAAP – Generally Accepted Accounting principles

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