Financial Accounting

Always do your – – – first, then your – – – – credits, debits
accounting equation – Assets = Liabilities + Equity

An equation showing the relationship among assets, liabilities, and owner's equity

Bond Principal – Is the amount (a) payable at the maturity of the bond and (b) on which the periodic cash interest payments are computed.
Monetory concept – All transactions are recorded in New Zealand dollars
owner's equity-drawing – account used to record amounts withdrawn by an owner of a proprietorship.
Return – Buyer returns inventory because of dissatisfaction
Consistency Principle – The consistency principle prevents people from changing accounting methods for the sole purpose of manipulating figures on the financial statements. The consistency principle requires accountants to apply the same methods and procedures from period to period.
Full Disclosure Principle – Accounting principle that indicates that companies disclose circumstances and events that make a difference to financial statement users
Assets – Resources a business owns or controls that are expected to provide current and future benefits to the business
This job analysis method is often time consuming and expensive to develop, and such an impersonal approach may have adverse effects on respondent cooperation and motivation.
Materiality Accounting – A ommission or misstatement of material that could influence decisions e.g. $100 little cafe vs. restaurant
Account – A record that summarizes all the transactions pertaining to a single item in the accounting equation
Service Business – a business that performs an activity for a fee
This jоb аnаlysis methоd is оften time consuming аnd expensive to develop, and such an impersonal approach may have adverse effects on respondent cooperation and motivation.
Funding Period – Period of time when Federal funding is available for obligation by the recipient.
limited partnership – form of partnership where one or more partners are not active in the daily running of the business, and whose liability for the partnership's debt is restricted to the amount invested in the business
retail merchandising business – a merchandising business that sells to those who use or consume the goods
Trial balance – A proof of the equality of debits and credits in a general ledger
Order of Liabilities in a Business – The liabilities that are payable within the shortest amount of time are listed first and the liabilities that are due more than one year in the future are listed last.

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