Horngren’s Accounting Chapter 2 Vocabulary

Income taxes payable – Liability
Merchandise inventory 150
Cash 150 – Journal Entry: Buyer pays Haul-It $150 to ship stereo equipment how does he account for this
liabilities 2 – kötelezettségek
Contribution Margin Per Unit – Sales price per unit
– All Variable costs per unit
= Contribution margin per unit
Accounting Equation – An equation showing the relationships among assets, liabilities, and owner's equity
Accounting – System of gathering financial info about a business & reporting it to users
Correcting entry – a journal entry made to correct an error in the ledger
"Financing Section" – section of statement of cash flows

cash related to borrowing and repaying debt, or payments to or from owners

The accounting cycle (x9)

(Info) – 1. Analyze business transactions
2. Journalese transactions
3. Post to ledger accounts
4. Prepare a trial balance
5. Journalese and post adjustment entries
6. Prepare adjusted trial balance
7. Prepare the financial statements
8. Journalize and post closing entries
9. Check maths again

excess of revenue – net income/earnings
A disgruntled employee in Australia hacked into a sewage system, causing a quarter of a million gallons of raw sewage to flood a hotel and a park.
48. In what order are the following financial statements prepared: (1) balance sheet, (2) income statement, and (3) statement of stockholders' equity?
A. 1, 2, 3.
B. 3, 2, 1.
C. 1, 3, 2.
D. 2, 3, 1. – D. 2, 3, 1.
XBRL Extensible Business Reporting Language – technology that enables firms to report info ina standardized way that makes the data immediately reusable and interactive
open account – write title and number
Taxable – Public medical plans
What are the three types of Inventory? – 1) Raw material inventory
2) Work- in process inventory
3) Finished- goods inventory
A disgruntled emplоyee in Austrаliа hаcked intо a sewage system, causing a quarter оf a million gallons of raw sewage to flood a hotel and a park.
Journalizing? – the process of recording transactions in a journal

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