Chapter One Accounting In Action

Relevant Range – the range of activity (volume of units produced or sold) where the assumptions about cost behavior (variable or fixed) are valid.
The Sarbanes-Oxley Act requires that all major U.S. corporations
A. prepare bank reconciliations monthly.
B. maintain a petty cash fund.
C. maintain an adequate system of internal control.
D. must file reports with the National Commission on Fraudulent Financial Reporting. – C
compound entry – A journal entry that involves three or more accounts.
Double entry bookkeeping means an entry is made: – recording equal debits and credits for a single business transaction
extraordinary item – olağandışı kalemler
long-term liabilities – Obligations not due within one year or the operating cycle, whichever is longer.
FREE ON BOARD (FOB) – THE PURCHASE AGREEMENT SPECIFIES FOB TERMS TO INDICATE WHO PAYS THE FREIGHT. FOB TERMS ALSO DETERMINE WHEN TITLE TO THE GOODS TRANSFER TO THE PURCHASER
A data warehouse is for daily operations and often includes data for the current fiscal year only.
The short hand for "Operating Profits" is…? – EBIT [ Earning Before Interest and Taxes ]
Examples of current assets – 1. cash
2. Accounts receivable
3. Supplies
4. Obligations due from customers
Balance Sheet – A financial statement that reports assets, liabilities, and owner's equity on a specific date
receipt – A business form giving written acknowledgement for cash received
A dаtа wаrehоuse is fоr daily оperations and often includes data for the current fiscal year only.
Non-Current Liabilities – Liabilities which will be paid over a period of time beyond the next accounting period.
E.g. mortgages, hire purchase payments and long term loans.

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