Accounting I: Financial Accounting Ch 1

Which of the following is not an element of the fraud triangle?
A. Rationalization.
B. Financial pressure.
C. Segregation of duties.
D. Opportunity. – C
Short term – People & companies you must pay within a year : layaway item
business – an organization in which basic resources (inputs) such as materials and labor, are assembled and processed to provided goods or services (outputs) to customers
Expenses – •Outflow of value
•Asset decreases OR Liability increases
•Equity decreases (not because of more drawings)
Liabilities – Debts owed by a firm
Hughes has a debit balance of $5,000 in its Allowance for Doubtful Accounts before any adjustments are made at the end of the year. Based on the review and aging of its accounts receivable at the end of the year, Hughes estimates that $60,000 of its receivables are uncollectible In this situation, the amount of bad debts expense that should be reported for the year is
A. $5,000.
B. $55,000.
C. $60,000.
D. $65,000. – D
What type of account is stock? – Permanent = accounting equation component
Revenue recognition – accounting principle that states that revenue is recognized and recorded on the date it is earned even if cash has not been received.
Journalizing – Recording transactions in a journal.
Which of the following commands are not SQL commands  ( 8pts ) The … represents a placeholder for the rest of the command A ) sort … E ) … where … B ) SELECT … F ) desCribe … C ) truncate …   G ) … ORDER … D ) … limit … H ) drop …
Liquidity – being in cash or easily convertible to cash
revenues – gross increase in equity from a company's business activities that earn income, also called sales
Responsibility Accounting – a system that links managers' decision-making business segments
Ration – relationship between two numbers
Balance Sheet – list of assets, liabilities, and owners equity as of a specific date
contingent liability – a potential obligation arising from a past event
depreciable cost – difference between its original cost and its salvage value
Which оf the fоllоwing commаnds аre not SQL commаnds  ( 8pts ) The … represents a placeholder for the rest of the command A ) sort … E ) … where … B ) SELECT … F ) desCribe … C ) truncate …   G ) … ORDER … D ) … limit … H ) drop …
Book value – This value is the difference between an asset and accumulated depreciation..
Dividends – Distribution to stockholders
The most important number on the income statement is the – Net income also known as the bottom line
lenders – include suppliers and financial institutions that lend money to companies
cash discounts – A deduction from the invoice price granted to induce early payment of the amount due.

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