Financial Accounting: Ch 3 Adjusting The Accounts

activity drivers – factors that measure the consumption of activities
by products and other cost objects.
Auditor Opinions – Unqualified
Qualified
Adverse
Disclaimer of Opinion
manual accounting system – accounting information processed by hand such as Quickbook and Peachtree
raw materials – basic goods that will be used in production but have not yet been placed in production
Stockholder – An owner of one or more shares of a corporation.
Freight expense 150
Cash 150 – Journal Entry: Seller pays Haul-It $150 to ship stereo equipment how do they account for this
Common Stock – Term used to describe the total amount paid in by stockholders for the shares they purchase.
Parkside Pool reports net sales of $625,000, gross profit of $275,000, and net income of $15,000. The company's cost of goods sold is:
Accounting Equation – The total assets of a company are equal to the total of the liabilities and shareholder equity
provisions of servicie – operating income, income
Materiality constraint – Prescribes that accounting for items that significantly impact financial statements and any inferences from them adhere strictly to GAAP
Pаrkside Pооl repоrts net sаles of $625,000, gross profit of $275,000, аnd net income of $15,000. The company's cost of goods sold is:
sales invoice – a source document for recording a sale on account
Periodic – COGS calculated at the end of the period
finds inventory on hand only once
Uses a "purchases" account
investee – متلقي الاستثمار
understandability – information presented in a clear and concise fashion so that users can interpret it and comprehend its meaning

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