Financial Accounting Ch 6

Profit and Loss Statement; Income Statement – Expenses are listed on which of the following reports?
depreciation rate – Abschreibungssatz
business ethic – the use of ethics in making business decisions
F.U.T.A. – Federal Unemployment Tax Act.
Expense, Income Statement, Debit, Temporary – Costs of Goods Sold
revenue – money that a business receives from providing goods or services to a customer
Investing Activities – Purchase or sale of plant and equipment are examples of this activity.
Allowance for bad debts (allowance for doubtful accounts) – a contraasset account utilized to accumulate totals against accounts receivable.
The random variable x is defined as the number of mistakes made by a typist on a randomly chosen page of a physics thesis. The probability distribution follows. (6 pts; 1 pt for a-d, 2 pts for e) x p(x) 0 0.3 1 0.4 2 0.2 3 0.1   a. What is ? b. Find
Cost of Goods Sold – The actual cost to the business of the merchandise sold to customers.
False – When cash is paid for expenses the business has more equity
Depreciation – systematic allocation of the cost of a depreciable asset to expense. Example: cost of new equipment to what its worth after 4 years.
Credit – Recorded on the right side; an entry that decreases asset and expense accounts, and increases liability, revenue and most equity accounts; abbreviated Cr. (p.46)
Bond Issuing Procedures – company sells to investors, sells to trustee
The rаndоm vаriаble x is defined as the number оf mistakes made by a typist оn a randomly chosen page of a physics thesis. The probability distribution follows. (6 pts; 1 pt for a-d, 2 pts for e) x p(x) 0 0.3 1 0.4 2 0.2 3 0.1   a. What is ? b. Find
Activity base – A measure of whatever causes the incurrence of a variable cost.For example, the total cost of x-ray film in a hospital will increase as the number of x-rays taken increases. Therefore, the number of x-rays is the activity base that explains the total cost of x-ray film.
subsidiary ledger – a ledger that is summarized in a single general ledger account

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