Financial Accounting Final

Sales return – Credit allowed a customer for the sales price of returned merchandise, resulting in a decrease in the vendor account revivable
Retained Earnings Statement – A summary of the changes in the retained earnings for a specific period of time.
Revenue recognition – Revenue recorded only when earned, not when cash received
financial accounting standards board (FASB) – the private sector body that is responsible for establishing GAAP in the United States
Treasury Stock – Is a corporation's own stock that has been issued but subsequently reacquire and is still being held by that corporation.
Operating – Dividends received from an investment
An understanding of the underlying behavior of costs helps in all of the following EXCEPT:
a. costs can be better estimated as volume expands and contracts
b. true costs can be better evaluated
c. process inefficiencies can be better identified and as a result improved
d. sales volume can be better estimated – d. sales volume can be better estimated
If the operator does not have process-stopping authority during SPC, the company is making a serious error.
Merchandise – Goods that a merchandising business purchases to sell
Revenues – Earnings from the sale of goods or services to costumers. Revenues are reported whether or not have yet been paid for.
normal cost system – an approach that assigns the actual costs of
direct materials and direct labor to products but uses a predetermined
rate to assign overhead costs.
Report Form – Total assets on top, total liabilities and total O.E underneath
Current assets are also defined as what and why? – Working assets. Because they are in a constant cycle of being converted into cash.
Depreciation expense – The amount of depreciation taken during the current fiscal year is properly termed
Assets – Probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events (what we own)
If the оperаtоr dоes not hаve process-stopping аuthority during SPC, the company is making a serious error.
What type of intangible asset is a contractual agreement under which the provider presents the providee the right to sell certain products? – Franchise or License
Petty cash fund – A special fund for use in disbursing small sums of money is called a/an
Accounting Cycle Step 5 – Accounting Cycle: Step to prepare financial statements. Prepare financial statements to report information to owners, managers, and other interested parties.
retained earnings statement – financial statement that summarizes the amounts and causes of changes in retained earnings for a specific time period

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