Fin: Ch 1: Accounting Information For Decision Making

Issues of sustainability reporting – Cost, regulation and measurement issues
What are some factors that affect a company's control environment? – 1. the integrity, ethical values, and compentence of the company's personnel
2. management's philosophy and operating style
3. management's assignment of authority and responsibility
4. prodcedures for the hiring and training of personnel and
5. oversight by the board of directors
monetary unit assumption – requires that items on the financial statements be measured in terms of a monetary unit
Balance sheet comparative forms – record the balance sheet data for two or more comparable periods on the same form so that the information can be readily compared.
statement of cash flows – summary of cash receipts & cash payments for time period
Accrual Basis Accounting – Records revenue when earned and expenses when incurred, regardless of the timing of cash receipts or payments.
How many half-lives are required for the concentration of reactant to decrease to 1.56% of its original value?
Hughes Company has a credit 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. The amount of bad debts expense which should be reported for the year is
A. $5,000.
B. $55,000.
C. $60,000.
D. $65,000. – B
Sole Proprietorship – A business entity owned by one person who is legally responsible for the debts and taxes of the business.
Accounts Receivable – amounts owed by customers from prior sales
Income From Operations – What is left from Gross Margin when Operating Expenses is deducted.
credit – Wrote a check to the owner: ______ cash
(Objectives of financial statements)timely information notes& disclosures – info should be provided on a timely basis sufficient info should be presented in notes and disclosure
Hоw mаny hаlf-lives аre required fоr the cоncentration of reactant to decrease to 1.56% of its original value?
what 3 accounting functions do all business have – internal accounting
external accounting
tax reporting

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