Principles Of Accounting Vyc1

Entity Concept – Keep all financial records separate from that of another entity
Industry Practice Constraint – In a few limited cases, the unusual operating characteristics of an industry, usually based on risk, special accounting principles, and procedures, have been developed; these may not conform completely with GAAP for other industries.
The primary purpose of a business is – Profit
Sales returns and allowances – Transactions in which the seller either accepts goods back from the purchaser (a return) or grants a reduction in the purchase price (an allowance) so that the buyer will keep the goods.
A proposed solution to a problem being considered by the Financial Accounting Standards Board. – exposure draft
Worksheet – A columnar accounting form used to summarize the general ledger information needed to prepare financial statements
Credit card sales – A sale in which a credit card is used for the total amount of the sale at the time of the transaction
What happens in Plato’s Symposium? Name three characters who give long speeches (one a comic poet, one a philosopher, one a “louche bad boy”), and what is the basic idea of each each character’s speech?
Gross Profit % – Gross Profit divided by Net Sales Revenue
Period of time – Income statement, statement of owner's equity, and the statement of cash flows.
correcting entry – an entry made to correct an error in a joournal entry discovered after posting
Expenses – Decreases in assets or increases in liabilities from ongoing operations.
Whаt hаppens in Plаtо’s Sympоsium? Name three characters whо give long speeches (one a comic poet, one a philosopher, one a “louche bad boy”), and what is the basic idea of each each character’s speech?
expenses – the cost of assets consumed or services used in the process of generating revenues
faithful representation – requires that the information be complete neutral and free from error
Definition of Expenses – Expenses is an outflow of economic benefit (or decrease in inflow) in the form of an decrease in assets (or increase in liabilities) that decreases owners equity (expect for drawings)
Expenses is recorded in Cash Payment Journal.
(Cash paid for any item for running the business that cannot be reused)
Expenses includes Advertising, Supplies (of stock), Interest Paid, Petrol, Wages, Electricity, Insurance, Telephone, Materials, Office Expenses, Repairs, Cleaning, Postage, Delivery Expenses, Interest on Loan, Bills.
Expect from Drawings, Mortgages, GST Paid, Creditor repayment, repayment of loan, cash drawings.
Balance sheet – A statement at one point in time which shows all resources controlled and obligations due
Pre-Award Costs – Any cost incurred prior to the beginning date of the project period or the initial budget period of a competitive segment (under a multi-year award), in anticipation
of the award and at the applicant's own risk, for otherwise allowable costs.

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