Financial Accounting Chapter 1

Direct costs are traced the same way for actual costing and normal costing. – True
federal unemployment tax – a tax used for state and federal administrative expenses of the unemployment program
net sales-cost of goods sold – Gross profit equation
standard account – a formal account that includes columns for date, explanation, posting, reference, debit, and credit
Expenses – reported on the income statement during the period they are incurred.
1. a service is provided to the company
2. An asset is used (up) to provide goods or services to customers
**INCURRED WHEN THE COMPANY RECEIVES THE SERVICE OR THE ASSET IS USED (UP), NOT WHEN THE COMPANY PAYS CASH FOR THE SERVICE/ASSET**
withdrawals – subdivision of of owner's equity that records money or other assets an owner withdraws from a business for personal use never for company purpose
International Financial reporting standards (IFRS) – International accounting standards set by the international accounting standards board (ISAB)
Operating lease – Like a rental
General Journal – A financial record for entering all types of business transactions; a record of original entry.
closley held corp. – only allows a few people to invest in it
Which of the following can be done if a search-engine query is not generating enough results, or too many results?
cash basis accounting – a system based on the exchange of cash
51. The equation best describing the balance sheet is:
A. Assets = Liabilities + Stockholders' Equity.
B. Revenues – Expenses = Net Income.
C. Ending Retained Earnings + Dividends = Net Income.
D. Revenues + Expenses = Net Income. – A. Assets = Liabilities + Stockholders' Equity.
Which оf the fоllоwing cаn be done if а seаrch-engine query is not generating enough results, or too many results?
Direct material cost – cost of any material that is an integral part of the finished product
Current Assets – Cash, accounts receivable, inventory, and other assets that are likely to be converted into cash, sold, exchanged, or expensed in the normal course of business, usually within a year.
hot stock – a stock who rises quickly the day it goes public
Temporary Accounts – "Nominal" are Income Statement accounts that are closed to Retained earnings at the end of the accounting period.
Patent – an exclusive right to manufacture a product or use a process

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