Financial Accounting Ch 8

tests of liquidity – current ratio is from _
note payable – formal promise, usually denoted by the signing of a promissory note, to pay at a future amount
on the due date – في تاريخ الاستحقاق
GST – Goods and Service Tax: a 10% tax levied by the federal government on sales of goods and services
process cost system – records product cost for each manufacturing department or process
The period of time required to purchase good and services and turn them back into cash is called – The normal operating cycle
What are tangibles? – Physical assets e.g. freehold land and buildings, leasehold land and buildings, plant and machinery
Which of these does not appear on the balance sheet? – Expenses
Current assets – Assets that a company expects to convert to cash or use up within one year.
Withdrawal – Assets taken out of a business for the owners personal use
SECTION 2: Indefinite articles question 3 [l1] profesores
Balance Sheet – Assets=Liabilities + EQ
summarizes financial position as of a point in time
Historical cost – amount paid when the assets was acquired
Internal Revenue Service (IRS) – interprets and enforces the tax laws that specify the rules for determining taxable income also influence accounting practice
account – accounting device used in bookkeeping to record increases and decreases
Can management influence the ratios that measure liquidity – Yes
accounts payable – liabilities

amounts owed to suppliers, normally paid in 30-60 days

suppliers are those who provide inventory and services over and over again, each month

SECTION 2: Indefinite аrticles questiоn 3 [l1] prоfesоres
Depreciable Base = ______ – ___________________ – Cost – Anticipated depreciation value

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