Funeral Service Accounting

What is a current liability? – A present obligation, the settlement of which is expected to result in an outflow of economic benefits within 12 months.
When actual input data from past periods is used to develop a budget:
a. past inefficiencies are excluded
b. expected future changes are incorporated
c. information is available at a low cost
d. audited financial information must be used – c. information is available at a low cost
Single step income statement – An income statement that shows only one step in determining net income
False – The principles of right and wrong that guide an individual in making personal decisions is called business ethics
Service business – A business that provides services to customers. (p.11)
Cash reciepts journal – A special journal used to record only cash receipt transactions is called a cash receipts journal
Budget Adjustment – The act of amending the budget by moving funds from one category or line item to another.
Cash Surplus – An increase in a positive bank balance or a decrease in bank overdraft. (more cash receipts than cash payments)
Ke – Cost of equity
=Beta *MRP-risk free rate
Sentence G: Propter culpas malorum patria nostra non valebit. Translate:
on a statement of cash flows, the purchase of machinert in exchange for common stock is – shown on a supporting schedule of noncash investing and financing activities
Accounting – Language of business; measures activities of business
component percentage of net income – net income / sales
Gain or Loss on discontinued operations – results from selling or disposing of a significant separate part of the business. ie. product lines, moving out of a region etc. Different from Restructuring
Stockholder's equity – Capital Stock: Amounts contributed by owners of a corporation.
Retained Earnings: Net income kept in the business (not distributed as dividends).
Proving Cash. – The process of determining whether the amount of cash, both on hand and in the bank, is the same as that which is indicated in the accounting records.
Sentence G: Prоpter culpаs mаlоrum pаtria nоstra non valebit. Translate:
Allowance of Doubtful Accounts – An account in which is recorded the decrease in value of accounts receivable due to possible uncollectible items

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