Financial Accounting Ch 7

accounting system – planned process designed to compile financial data and summarize the results in accounting records and reports
Credit – An amount recorded on the right side of T account
Depreciation expense

Annual depriciation expense – Gradually reduces the net book value of an asset

Cost of the asset – scrap value aka salvage value / its useful life

journal – a record of the transaction of a business
financial accounting – Targeted toward reporting financial information about a business to external users such as the owner(s) and creditors.
intangible assets – Assets that do not have physical substance.
Why do accountants normally calculate cost per unit as an average? 
Uncollectible accounts – Accounts receivable that cannot be collected.
certified public accountant – public accountants who have met a states education, experience, and examination requirements
Why dо аccоuntаnts nоrmаlly calculate cost per unit as an average? 
withdrawl – assets taken out of a business for the owners personal use
C.P.A. – Certified Public Accountant

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