Financial Accounting Ch 8

Accumlated depreciation – Contra Asset, noncurrent asset
Conceptual Framework for Financial Reporting: First Level: The "——" – The "why" purpose of Accounting

Objective

When estimating a cost function, cost behavior can be approximated by a linear cost function within the relevant range. – True
Revenues that remain the same for two alternatives being examined are relevant revenues. – False
Check. – A piece of commercial paper drawn on funds in a bank account and payable on demand.
Non taxable – Employer paid ei
Adequate disclosure – Financial statements contain all info necessary to understand a business's financial condition
Natural Resources OR Intangible Assets – …Is a Debit balance account.
Which of the following is a mechanism that contributes to a measurement-managed company's success?
GAAP – Generally Accepted Accounting Principles.Revenues recognized when earned and expenses are recognized when incurred.
Posting – the procedure of transferring journal entries to the ledger accounts
Current liabilities – Balance Sheet
obligations that a company reasonably expects to liquidate either through the use of current assets or creation of other current liabilities.
wholesaler – sell to retailers
Schedule of Accounts Payable – A listing of vendor accounts, account balances, and total amount due from all vendors
Cash cycle/days funding – = inventory days+ receivable days – payable days
(+)=requires funding
(-)=provides funding
time value of money – indicates a relationship between time and money
Which оf the fоllоwing is а mechаnism thаt contributes to a measurement-managed company's success?
Earnings per share – measures the size of the dividend that a firm can pay shareholders
subsidiary journal – single type of account and is subordinate to the general ledger
bank statement – a report of deposits withdrawals and bank balances sent to a depositor by a bank
certified public accountant (CPA) – A license issued by states that allows an accountant to specialize in public accounting.

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