Accounting Vocabulary Chapters 79

service revenue – revenue, IS, credit
Industry Practice Constraint – In a few limited cases, the unusual operating characteristics of an industry, usually based on risk, special accounting principles, and procedures, have been developed; these may not conform completely with GAAP for other industries.
profit margin – árrés, marzs
income statement – which financial statement is INCOME TAX EXPENSES usually found
Net book value – Is calculated by deducting accumulated depreciation from the long-term asset account
All of the following are classified as cash except
A. checks.
B. money orders.
C. money on hand.
D. commercial paper. – D
The Matching Principle – The matching principle requires expenses to be reported in the same period as the revenues to which they are related. The matching principle is closely linked to accrual accounting.
When a(n) ______ is presented the probability of a response increases. When a(n) _____ is presented the probability of response decreases.
certified public accountant – an individual who has met certain criteria and is thus allowed to perform audits of corporation
Companies report short-term notes receivable at their cash (net) realizable value.
A. True
B. False – TRUE
When а(n) ______ is presented the prоbаbility оf а respоnse increases. When a(n) _____ is presented the probability of response decreases.
indirect method – not equal to income of a firm
accural basis does not emphasize cash flows
most companies use the indirect method
-start w/ net income and convert by adding/subtracting certain amts
Liabilities recorded – Adjusted Trial Balance
order due
accounts pay, wage pay, bank loan pay, unearned rev.
debit: – an amount recorded on the left side of a T account
Retained earnings – These form a component of the equity side of a balance sheet and are the result of earnings activities.
Chart of Accounts – A list of the accounts used by a business to record its financial transactions.

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply