Intro To Accounting 20653 Exam 3 Laurie Wood Tcu

Revenue Recognition Principle – provides guidance on when a company must recognize revenue. (Revenue is recognized when earned, not received.)
ganancia pérdida antes del impuesto a las ganancias – income loss before income tax
retained earnings statement – financial statement that summarizes the amounts and causes of changes in retained earnings for a specific time period
An entry on the credit side of a liability account indicates that the account has been – Increased
Current assets – Current liabilities – = working assets or working capital
libro inventarios y balances – inventory book
A woman needs Motrin 600 mg twice a day, by mouth, but the pharmacy only has Motrin 200 mg tablets. How many tablets must she take per dose?
terms of sale – the price and payment method for goods established by either you or the retailer-
The allowance for doubtful accounts, which appears as a deduction from accounts receivable on a balance sheet and which is based on an estimate of bad debts, is an application of the – expense recognition principle
Accounting Cycle Step 4 – Accounting Cycle: Step to prepare a worksheet. At the end of each period, prepare a worksheet.
ajuste de resultado de ejercicios anteriores – adjustment to prior year results
income from operations – Expenses related to operating the entity
How can a business earn a net profit but at the same time suffer a cash deficit? – We calculate Profit by: Revenue – Expenses. (We can earn a net profile by having more Revenue than Expenses)
We calculate Cash by: Cash Receipts – Cash Payments. (We can suffer a cash deficit by having more Cash Payments than Cash Receipts)
However not all Revenues are Cash Receipts and Expenses are not all Cash Payments.
(Example of contribute to a Cash Deficit but will not have any effect on Net Profit – Drawings, A Loan Repayment, A cash purchase of a non current asset)
True – T or F: When items are bought and paid for later this is referred to as buying on account.
A wоmаn needs Mоtrin 600 mg twice а dаy, by mоuth, but the pharmacy only has Motrin 200 mg tablets. How many tablets must she take per dose?
How to you calculate "Income available to Common Shareholders'?" – = Net Income – Preferred Dividends
this system uses separate journals for similar transactions – Five journal system
stop order – order to sell all stocks
purchase journal – a book of original entry used to record purchases of merchandise on credit only

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