Accounting 2301 First Exam

retained earnings – mérleg szerinti eredmény
Internal Controls – Policies that allow managers to control and monitor business activities such as company policies, accounting procedures, and physical safeguards to protect assets.
architect – One who draws plans for buildings and makes certain that they are built correctly
trial balance – list of accounts and their balances at a given time
Advertising Expense – Normal Balance: Debit
Type of Account: Expense
Financial Statement: IS
financial statements – reports used by external decision makers of financial accounting
sinking fun bond – part of the amount is supposed to be invested somewhere; at least part is going to come back
Materiality – A company-specific aspect of relevance. An item is material when its size makes it likely to influence the decision of an investor or creditor
How to find GST? – To add GST to an item: multiply by 10% To find GST already included in the transaction: divide by 11
Chicago School theorists argue that the central, and perhaps only, purpose of antitrust law is to encourage economic ____.
#30. Which of the following will not cause a change in the owner's equity of a business? – payment of a business debt
Three ways to recognize revenue – 1) Customer Pays cash when service or product is delivered

2) Customer pays after service or product is delivered

3) Customer pays before service or product is delivered

Balance Sheet, Income Statement, Retained Earnings Statement, Statement of Cash Flows – What are the four basic financial statements?
Work sheet – A columnar accounting form used to summarize the general ledger information needed to prepare financial statements
profit – the difference between the amount received from customers for goods or services provided and the amounts paid for the inputs used to provide the goods or services
Non taxable – Club dues when the advantage is to the employer
# of days in year/ accounts receivable turnover – # days in collection period
-how long it takes to collect average accounts receivable
Chicаgо Schооl theorists аrgue thаt the central, and perhaps only, purpose of antitrust law is to encourage economic ____.
Calculator tape – Daily cash sales, date them by hand (T)
Liability, Balance Sheet – Type and Statement for: Unearned Rent Revenue
Income statement represents what types of accounts? – Temporary (reset to zero at the beginning of each period)
merchandise purchases are: – expenses (debited) and have a negative effect on Owner's equity
The total selling prices of all the goods that the company sold during the year – Revenues

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