Intro To Accounting 20653 Exam 1 Laurie Wood Tcu

FOB DESTINATION – SITUATION IN WHICH THE BUYER TAKES OWNERSHIP (TITLE) TO THE GOODS AT THE DESTINATION POINT AND THE SELLER PAYS THE FREIGHT
owners' equity – the owners' claims to the assets of an entity
a person or business to whom a liability is owed – creditor
file maintenance – procedure for arranging accounts in a general ledger, assigning account numbers and keeping records
Cash equivalents include each of the following except
A. Commercial paper.
B. Money market funds.
C. Petty cash.
D. US Treasury bills. – C
Separate-Entity Assumption – States that a business transactions are accounted for separately from the transactions of owners.
cash accounting for revenue – based upon the principle that a business reports its revenue when it is paid for the merchandise or services provided.
Equity – Owner's claim on the assets of a business; equals the residual interest in an entity's assets after deducting liabilities; also called net assets.
What is the target tissue for thyroid releasing factor?
Monetary unit assumption – In the US, the dollar is the "measuring stick" used in financial reporting, without consideration of changes in purchasing power
Statement of stockholders equity – A financial statement that shows changes in a coporations ownership
Whаt is the tаrget tissue fоr thyrоid releаsing factоr?
When can a cost be reported on the balance sheet as an asset? – A cost can only be reported on the balance sheet as an "asset" (something the company has) if there is "probably future economic benefit"

When the asset is used or converted to cash the asset becomes an "expense" because there is no longer probable future economic benefit

Which of the following budgets would NOT be useful in preparing a company's projected income statement?
a.
Pro forma balance sheet
b.
Purchases budget
c.
Expenses budget
d.
Sales budget – a.
Pro forma balance sheet

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