1) recorded when used to generate revenue 2) cash paid before during or after expense is recognized – expense matching principle
Owner's equity = – assets – liability
TEST!! Bank reconciliations – WHEN you get to question find bank balance: add deposits outstanding and subtract checks outstanding
d. – Statement of cash flows—identifies cash inflows (receipts) and cash outflows (payments) over a period of time.
What is the money earned by a company after with holdings called? – Net Pay
The excess of current assets over current liabilitis is called: – Net income/profit
income statement – the financial statement that first reports revenues from an entity's operating activities (such as selling merchandise) and then subtracting the expenses incurred in generating those revenues and operating the entity.
Realization of Revenue – revenue is recorded at the time goods or services are sold
Conservatism Principle – when in doubt, use the accounting method that will least likely overstate revenues and assets
Loss on disposal of plant assets – Expenses
Romanticism is often referred to as an “attitude” rather than a style of the 16th century.
Electronic Funds Transfer (EFT) – Transferring funds from what one account to another
due date – date that a payment is due
Accounting Equation – Assets=Liabilities+Equity
Temporary Owner's Equity Accounts. – Accounts utilized to accumulate income, expenses and owner's withdrawals for one accounting period only.
Rоmаnticism is оften referred tо аs аn “attitude” rather than a style of the 16th century.
Common stock decreases with – Debit
income Statement – period of time
Regarding vat, what does net and gross mean – Net: without vat
Gross: with vat
Gross: with vat