Accounting I Chapters 1 Thru 9 Century 21 Accounting

Account receivable – When a company makes a sale on account
Short Term Notes Payable – Amounts owed to banks and other financing companies expected to be repaid within one year or less
asset – the economic benefit is…. – using the asset to generate future cash flows or the asset itself will convert to cash
Open-Account Credit – A system that allows the sale of services or goods with the understanding that payment will be made at a later date.
Expenses – services were provided to the company or an asset was used (up.)
Trial balance aka – Is to make sure you make no mistakes on your accounts

The trial balance doesn't:
– doesnt detect fraud
– doesnt chow cash flows

Aka Ledger account aka t account

Depreciation – For a long term asset, charging an amount to expense at a constant rate over asset's life
Return – Activity and profitability
FASB – Private sector group that sets the broad and specific
AICPA – American Institute of Certified Public Accountants
The four nitrogenous bases of DNA are ____.
If Option 1 costs $100 and Option 2 costs $80, then the differential cost is $180. – False:
If Option 1 costs $100 and Option 2 costs $80, then the differential cost is $20.
FASB – Financial Accounting Standards Board – independent – set accounting rules
net pay – total gross minus federal income tax
Break- even point – the level of sales where total revenue equals total expenses and the business makes neither a profit nor a loss
cost of an asset – all costs necessary to put the asset (inventory) in position and condition for use *assets recorded at cash equivalent price
special amount column – journal amount headed with a title
The fоur nitrоgenоus bаses of DNA аre ____.
Financial Statement – 1.Income statement
2.Statement of Owner's Equity (Sole Prop & Partnership)
-corporation retained Earnings statement
3.Balance Sheet
Temporary Accounts – "Nominal" are Income Statement accounts that are closed to Retained earnings at the end of the accounting period.
Cash Flow Statement – used by investors and creditors to understand how a company generates and uses cash.
Continuity (Going Concern) Assumption – Company will operate long enough to use existing assets

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