Accounting 2301 First Exam

bottleneck – a machine or other part of a process that limits the total output of an entire system
The usual sequence of steps in the transaction recording process is: – B. Analyze, Journal, Ledger
business transaction – is an economic event that causes a change either an increase or a decrease- in assets, liabilities, or owner's equity
balance sheet equation – Assets = Liabilities + Owners Equity
A=L+OE
Overhead budget – Overhead rate x DLH x units produced + fixed overhead rate
manufactoring business – buys raw materials, such as wood or iron ore and transform them into finished product.
Revenues – Amounts earned from delivering good or services to customers
The _____ system is an integrated system capable of providing access to real-time data from the various functional areas of a company. 
cost of merchandise – The price a business pays for goods it purchases to sell.
A business or organization whose major purpose is to produce a profit for its owners. – economic entity
Accounting – planning, analyzing, interpreting, and recording financial information (PAIR)
What is interchangeable to capital – Proprietor
Owners equIity – amount remaining after the value of all liabilities is subtracted from the value of all assets
The _____ system is аn integrаted system cаpable оf prоviding access tо real-time data from the various functional areas of a company. 
chronological – in accounting, to record in order of time
Retained earnings – The amount of equity a company generates by being profitable and retaining those profits in the business

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