Accountingcentury 21

Depreciable asset – Asset with finite life over several accounting periods
What is Comparability? – The business needs to be able to compare the financial information of the business to identity trends and performance.
stockholder – An owner of one or more shares of a corporation
component percentage – percentage relationship between one finnancial statement item and the total that includes that item.
owner's equity equation – (Capital – withdrawals )+ (revenue -expenses)
Payable days – = Ending payables/COGS *365
non-operating activities – gains and losses result from
Which of the following is shown on both a multiple-step and a single-step income statement?
A. Gross profit
B. Net sales
C. Income from operations
D. Other expenses and losses – B
unqualified audit opinion – an auditors statement that the financial statements are fair presentations in all material respects in conformity with GAAP
Regardless of what borrowed, customary to repay obligation in – Cash
Managers use management accounting information to ________ strategy.
Gross profit will result if
A. operating expenses are less than net income.
B. sales revenues are greater than operating expenses.
C. sales revenues are greater than cost of goods sold.
D. operating expenses are greater than cost of goods sold. – C
Inventoriable costs – synonym for product costs
accounting record – muhasebe kaydı
Mаnаgers use mаnagement accоunting infоrmatiоn to ________ strategy.
In both job costing and process costing, normal spoilage attributable to a specific job is assigned to that job. – False
Closing Entries – serves to prepare the revenue and expense accounts for the next accounting period by reducing them to zero and to update the owner's equity account
time period assumption – a lifetime of a business can be divided into time periods such as months and years
Cash Flows from Financing Activities – cash flows associated with raising and paying back money to investors and creditors

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