Financial Accounting Equations

Know the difference between internal and external users of accounting information. – 1.INTERNAL DIRECT IMPACT IN PRCESS OF FINANANCE
valuación – appraisal, assessment, valuation
NOMINAL ACCOUNTS – THE REVENUE AND EXPENSE ACCOUNTS THAT RELATE TO A PARTICULAR ACCOUNTING PERIOD AND ARE CLOSED AT THE END OF THAT PERIOD. FOR A CORPORATION, THE DIVIDENDS ACCOUNT IS ALSO TEMPORARY. ALSO CALLED TEMPORARY ACCOUNTS
operating cycle – The time it takes to buy / sell inventory (or provide service) and collect the cash
Adjusting entries – Journal entries recorded to update general ledger accounts at the end of a fiscal period.
Accrual Adjustments – Needed when a company has earned revenue or incurred an expense in the current period but has not yet recorded it because the related cash will not be received or paid until a later period.
Revenue recognition concept – In general, revenue is recognized when an exchange has taken place Irrespective of Cash or Credit
general ledger – usually all transactions after a month, contains all asset, liability operations expenses, accounts, journal totals
Cost – The money that is used to make the product
What is an example of judicial review?
Days Earned – • Growth in terms of fleet
• If higher, more efficient on getting back on the road
• % of days you rent the vehicle = % of days earned – occupancy
Accumulated Depreciation – Normal Balance: Credit
Type of Account: Asset
Financial Statement: BS
Whаt is аn exаmple оf judicial review?
cash basis accounting – report revenues when cash is received, report expenses when cash is paid
Custodian – Person in charge of pending cash.
Break Even in Sales Dollars – Total Fixed Costs / Contribution Margin Ratio (%)

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