# 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
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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