Accounting General Journal, 9e: Chapter 01

Non-Current Assets – things that are not reduce to cash in one year.
Accounts Receivable – Customer owes money
Asset
Balance Sheet
Debit
Long-term operational assets – These assets have economic lives of more than a year and are assets that a business possesses and uses with the intention of generating revenue.
certified public accountant – public accountants who have met a states education, experience, and examination requirements
Expenses – Expenses are a decrease in assets or increase in liabilities which causes a decrease in equity and is not a distribution to the owner.
The expense recognition principle, also called the matching principle – iii.
DEFERRAL – THE CASH PAYMENT OCCURS BEFORE AN EXPENSE IS RECORDED OR THE CASH IS RECEIVED BEFORE THE REVENUE IS EARNED (ALSO CALLED PREPAID)
entrepreneur – a person who transform ideas for products or services into real world businesses
The Work in Process account for Chavez Company contained the following entries: Work in Process AccountDebit of $40,000 for direct raw materialsDebit of $60,000 for direct laborDebit of $30,000 for manufacturing overheadEnding balance, $42,000, associated with Job #2The company uses a job-order cost system. Work was only performed on two jobs during the period. What was the cost of Job # 1, which was started and completed during the period? 
Petty cash fund – A special fund for use in disbursing small sums of money is called a/an
residual value – amt. expected upon disposal of the asset at the end of the service life
fixed asset – any tangible resource that is expected to be used in the normal course of operations for more than one year and is not intended for resale
Consignor – The person or business concern by whom a shipment is made
Creditors – claims to resources
activity – action taken or work performed by equipment or people
for other people.
income statement – presents a summary of a business entity's revenues and expenses during a time period
The Wоrk in Prоcess аccоunt for Chаvez Compаny contained the following entries: Work in Process AccountDebit of $40,000 for direct raw materialsDebit of $60,000 for direct laborDebit of $30,000 for manufacturing overheadEnding balance, $42,000, associated with Job #2The company uses a job-order cost system. Work was only performed on two jobs during the period. What was the cost of Job # 1, which was started and completed during the period? 
Single step income statement – An income statement that shows only one step in determining net income
Normal side balance Revenue – Cr
International Accounting standards board – A board, similar to the FASB, whose mission is to develop a single set of high-quality standards requiring transparent and comparable information

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