Accounts

Owner, Withdrawals – Account used to record asset distributions to the owner.
Banks often use what when cosidering the advisability of making a loan: – Acid Test Ratio (Quick Ratio)
Leverage – ability to finance investments through borrowed fund
Structural functionalism – No change or conflict. Complex system interdependent parts
Order of the financial statements. – Income statement, statement of retained earnings, balance sheet, and statement of cash flows.
Liabilities – Organization's debts and other financial obligations. Paid off both Short (<1 yr) and Long Term (> 1 yr).
mainstream – мейнстрим, основное течение, господствующая тенденция, главное направление
Liability – An amount of money owed by a business
An information system used by an furniture maker took 48 hours to process an order received over the internet. After upgrading the system, processing time was reduced to sixty seconds. This is an example of
Consistency – Accounting methods and procedures are applied in the same manner from period to period
9. Which statement below best describes the accounting equation?
A. The change in retained earnings equals net income less dividends.
B. Equality of revenue and expense transactions over time.
C. Resources of the company equal creditors' and owners' claims to those resources.
D. Financing activities equal investing and operating activities. – C. Resources of the company equal creditors' and owners' claims to those resources.
Debt Inv. – Trading – Balance sheet – fair value (if not readily determinable then cost)
Income statement – interest income, realized and unrealized gains and losses
False – When a company receives cash from a customer for a prior sale the transaction increases the cash account balance and increases the accounts receivable balance
8. The accounting equation is defined as:
A. Assets = Liabilities + Stockholders' Equity.
B. Assets = Liabilities – Stockholders' Equity.
C. Net Income = Revenues – Expenses.
D. Liabilities + Revenues = Assets. – A. Assets = Liabilities + Stockholders' Equity.
An infоrmаtiоn system used by аn furniture mаker tоok 48 hours to process an order received over the internet. After upgrading the system, processing time was reduced to sixty seconds. This is an example of
GAAP – the standards and rules accountants follow while recording and reporting financial activities are commonly referred to as generally accepted accounting principles
Financial Accounting – EXTERNAL users. General-Purpose financial statements.
Computing Depreciation – Cost, Salvage value, useful Life
Postdated Check – cannot cash check until later date

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