Learn Accounting Basics 1

What are the steps to correcting an error in posting to the wrong acc.? – 1. Draw A line through the entire incorrect entry, recalculate the account balance, and correct the worksheet.
2. Record the posting in the correct account. We calculate the account balance, and correct the worksheet.
Accounts Payable Ledger – Ledger used by merchandising business that has accounts for creditors.
Sales Returns & Allowances – Normal Balance: Debit
Type of Account: Revenue
Financial Statement: IS
Chart of Accounts – List of accounts used by a company; includes an identification number for each account.
Federal income tax withheld – single/married; claiming financially; number of allowances
The determination of a cost as either direct or indirect depends upon the:
a. accounting system
b. allocation system
c. cost tracing system
d. cost object chosen – d. cost object chosen
Revenues – The gross increase in stockholders' equity resulting from business activities entered into for the purpose of earning incom
Determine which of the following variables has the larger standard deviation and explain your reasoning. Variable A: The height of a person who lives in the United States.   Variable B: The height of a 3rd grade student who lives in the United States.
dishonored check – a check not paid by the bank when properly presented
Total sales less the sales price of any goods returned by customers, less any reduction in price given to customers, less cash discounts allowed by the seller is called: – Gross Margin on Sales
Determine which оf the fоllоwing vаriаbles hаs the larger standard deviation and explain your reasoning. Variable A: The height of a person who lives in the United States.   Variable B: The height of a 3rd grade student who lives in the United States.
Partnership – A type of business considered to exist when there is co-ownership of a business activity carried on with the objective of making a profit.
Income/Revenue – an inflow of assets as a result of selling a product or providing a service.
F.I.C.A. – abbreviation for Federal Insurance Contributions Act.
#10. – subtract accounts payable from liabilities and then subtract paid rent from the equity and find new asset total

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