Financial Accounting Ch 5

merchandising business – a business that buys raw materials and transforms them into finacial products by using labor and machinery
account balance – The difference between the increase and decrease in an account
External transactions – Exchanges of economic value between one entity and another entity
Recordkeeping – is the recording of transactions and events, either manually or electronically. Also called bookkeeping.
Original cost – Первоначальная стоимость
25. Creditors' claims to a corporation's resources are referred to as:
A. Dividends.
B. Assets.
C. Liabilities.
D. Stockholders' equity. – C. Liabilities.
15)  _________ are the playwright’s paint.
Historical Cost – what the starting amount was when you paid for the equipment
39.A Tobashi scheme – is a financial fraud where a client's losses are hidden by an investment firm by shifting them between the portfolios of other (genuine or fake) clients.
income statement – the financial statement that first reports revenues from an entity's operating activities (such as selling merchandise) and then subtracting the expenses incurred in generating those revenues and operating the entity.
15)  _________ аre the plаywright’s pаint.
Retained Earnings = – Beg Retained Earning + Net Income – Dividends
Financial Accounting – The field of accounting that focuses on providing information for external decision makers
materiality constraint – An item is material when its size makes it likely to influence the decision of an investor or creditor.

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