Accounting: Debits & Credits

How much the company incurs to support primary business operations is reported – as operating expenses
Permanent Account – track financial from year to year by carrying their ending balances into the next year
Decreased – an entry on the debit side of the owners equity indicates that the account has been
Work sheet – A columnar accounting form used to summarize the general ledger information needed to prepare financial statements.
objectivity concept – A concept of accounting that requires accounting records and the data reported in financial statements to be based on objective evidence.
Book value – This value is the difference between an asset and accumulated depreciation..
Trial Balance – Is a list of all accounts with their balances to provide a check on the equality of the debits and credits.
investing activities – Activities that increase or decrease the long-term assets available to the business; a section of the statement of cash flows.
Ethics and Integrity – 1. discerning what is right and what is wrong
2. acting on what you have discerned, even at personal cost
Trade deficits reduce GDP in the short run, as we see in the national income accounting equation. 
What is "expectation gap"?

A. The difference between what the public thinks the accountant is doing and what the accountant thinks they can do.

B. The difference between what the public thinks the accountant is not doing and what the accountant knows they don't do.

C. The difference between what the public thinks the accountant is doing and what Congress says the accountant is doing.

D. The difference between what the accountant is doing and what the Courts say the accountant should be doing. – A. The difference between what the public thinks the accountant is doing and what the accountant thinks they can do.

Capital – : the account used to summarize the owner's equity in a business
Expense – decrease in assets or an increase in liabilities resulting from operating activities undertaken to generate revenue
working capital – kapitał obrotowy
Trаde deficits reduce GDP in the shоrt run, аs we see in the nаtiоnal incоme accounting equation. 
Outstanding Checks. – Checks that have been drawn and subtracted from the depositor's checkbook, but which have not yet been presented to the bank for payment.
Sale on Account – A sale for which cash will be received at a later date.
Quick Ratio Formula – Ratio suggests good liquidity.

Quick Ratio = Quick Assets / Current Liabilities

Sales Return – A firm's acceptance of a return of goods from a customer.
permanent accounts – this type of account
is not closed at the end of the year
on balance sheet
carried forward to next period

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