Weisinger Accounting Ch 5

accounts payable – unwritten promise to pay a supplier for assets purchased or services received
FICA – taxes assessed on both employer and employees. social security and medicare. this is matched by the employer
Expenses – Outflows or other using up of assets or incurrences of liabilities (or a combination of both) during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity's ongoing major or central operations.
Temporary accounts – Accounts used to accumulate information until it is transferred to the owners capital account
Delivery Expense – Normal Balance: Debit
Type of Account: Expense
Financial Statement: IS
Goods purchased for resale at a profit – Merchandise
dividends – distributions (usually cash) by a corporation to its stockholders.
Sole Trader – A business that is owned by 1 individual
Source document – A business paper from which information is obtained for a journal entry
Building – debit balance, Balance sheet, Permanent, asset
The USA uses a construct called the poverty line to measure poverty in the nation. 
Securities Exchange Commission – government entity that regulates the information public companies are required to provide to investors. Public companies must follow GAAP and provide additional information. There is no law that privately held companies must follow GAAP
sole proprietorship – An unincorporated business entity that is owned by a single individual.
Long-term investment – Economic resources that benefits the future longer than a year
Modified Accelerated Cost Recovery System (MACRS) – Depreciation system required by federal income tax law.
The USA uses а cоnstruct cаlled the pоverty line tо meаsure poverty in the nation. 
Federal awarding agency – Federal agency that provides an award to the recipient.
Preferred Stock – Stock whose owners have certain privileges over common stockholders.
Return on Assets – Net income/ Average Total Assets
Materiality Constraint – In some cases where an accounting item is deemed too small to affect a user's decisions, the "required" accounting may be ignored.
business activities are normally grouped into one of THREE CATEGORIES: – financing activities
investing activities
operating activities

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