Financial Accounting Equations

when a business receives cash from sales it must be recorded in: – cash receipts journal (CR)
General ledger – a ledger that contains all accounts needed to prepare financial statements
specific identification inventory cost flow method – Each item sold & purchased is individually identified; Required for goods that are not ordinarily interchangeable; & that are produced & segregated for specific projects.
Monetary Measurement – All transactions, assets liabilities, incomes, expenses, and equity are recorded and reported in New Zealand dollars.
plant assets – ppe, equipment, fixed assets
What type of fund is a debt service fund? – Governmental fund
Merchandising business – A business that buys goods from manufacturers and then sells them to consumers. (p.12)
Asset – items of value owned by a business or person
Match the word in the second column with the correct definition in the first column
Explain the Application of the Basic Principles of Accounting (4) – (4) Full disclosure principle: Companies generally provide information that is of sufficient importance to influence the judgment and decisions of an informed user.
the difference in long term notes payable and bonds payable is – when principle is repaid
Mаtch the wоrd in the secоnd cоlumn with the correct definition in the first column
Source Documents – Provides the evidence and data for accounting transactions.
liquid asset – быстро реализуемые средства (наличные, Расчетный счет)
Unit-level measures can distort product costing because the demand for overhead resources may be driven by batch-level or product-sustaining activities. – True
Useful Life. – The estimated life of a fixed asset.

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply