Account

entry – Information for each transaction recorded in a journal
resultados por las operaciones en discontinuación – income or loss from discontinuing operations
Capital Acquisition Ratio and formula – Ratio that reflects the portion of purchases of property, plan, and equipment financed from operating activities.

Capital Acquisition Ratio = Cash Flow from Operating Activities / Cash Paid for Property, Plant, and Equipment

For which form of business ownership(s) are the owners not legally distinct from the business? – Partnership & Proprietorship
subsidiary ledger – a ledger that is summarized in a single general ledger account
The natural business yr – the fiscal yr ends when business is the slowest, it makes it easier for them
computerized accounting system – When accounting information is processed by recording it into a computer.
the fraud triangle – -pressure
-rationalization
-opportunity
Accounting Duties – Public vs. Private – Public – Offers services to public, CPA (Certified Public Account), and Auditing, Taxation, Management Advisory Services.

Private – Employees of private businesses, Controller, Accounting Info. Systems; Financial, Cost and Tax Accounting; Budgeting; and Internal Auditing, CMA (Certified Managerial Accountant), and CIA (Certified Internal Auditor).

Most of the time required to maintain an e-commerce site is spent on:
Last-in, first-out (LIFO) method – An inventory costing method that assumes that the latest units purchased are the first to be sold.
SFAC No. 8, Chapter 3 identifies the qualitative characteristics that make accounting information useful. Presented below are a number of questions related to these qualitative characteristics and underlying constraints.

(a) What is the quality of information that enables users to confirm or correct prior expectations?

(b) Identify the pervasive constraint(s) developed in the conceptual framework

(c) The chairman of the SEC at one time noted, "If it becomes accepted or expected that accounting principles are determined or modified in order to secure purposes other than economic measurement, we assume a grave risk that confidence in the credibility of our financial information system will be undermined." Which qualitative characteristic of accounting information should ensure that such a situation will not occur? (Do not use representationally faithful.)

(d) Muruyama Corp. switches from FIFO to average cost to FIFO over a 2-year period. Which qualitative characteristic of accounting information is not followed?

(e) Assume that the profession permits the savings and loan industry to defer losses on investments it sells, because immediate recognition of the loss may have adverse economic consequences on the industry. Which qualitative characteristic of accounting information is not followed? (Do not use relevance or representationally faithful.)

(f) What are the two primary qualities that make accounting information useful for decision-making?

(g) Watteau Inc. does not issue its first-quarter report until after the second quarter's results are reported. Which qualitative characteristic of accounting is not followed? (Do not use relevance.)

(h) Predictive value is an ingredient of which of the two primary qualities that make accounting information useful for decision-making purposes?

(i) Duggan, Inc. is the only company in its industry to depreciate its plant assets on a straight-line basis. Which qualitative characteristic of accounting information may not be followed? (Do not use industry practices.)

(j) Roddick Company has attempted to determine the replacement cost of its inventory. Three different appraisers arrive at substantially different amounts for this value. The president, nevertheless, decides to report the middle value for external reporting purposes. Which qualitative characteristic of information is lacking in these data? (Do not use relevance or representational faithfulness.) – A. Confirmatory Value
B. Cost Constraint
C. Neutrality
D. Consistency
E. Neutrlity
F. Relevance and Faithful Representation
G. Timeliness
H. Relevance
I. Comparability
J. Verifiability

balance an account – Konto ausgleichen
Fiscal period – The length of time for which a business summarizes and reports financial information
retained earnings statement – A summary of the changes in the retained earnings in a corporation for a specific period of time, such as a month or a year.
Net Income – A company's total earnings, also called net profit or the "bottom line." Net income is calculated by subtracting totally expenses from total revenues.
Managerial – Reports for internal users
Mоst оf the time required tо mаintаin аn e-commerce site is spent on:
par-value stock – fixed dollar amt. specified in the corp/ charter
* legal capital per share
*credited to capital stock acct.
Profit margin ratio – net income/net sales

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