Managerial Accounting: Chapter Three: Joborder Costing

sales invoice – a source document for recording a sale on account
bond trading is done on… – national securities exchange
Free from error – no errors or ommission in the description
Historical cost – The cost incurred in aquiring the item
subsidiary journal – single type of account and is subordinate to the general ledger
Sarbanes-Oxley Act – Created the Public Company Accounting Oversight Board, regulates analyst conflicts, imposes corporate governance requirements, enhances accounting and control disclosures, impacts insider transactions and executive loans, establishes new types of criminal conduct, and expands penalties for violations of federal securities laws. (p.9)
Investments by owner – The assets an owner puts into the business
For impersonal communications, source effects may arise from the:
Retained earnings – =sum (all net incomes)- Sum (all dividends paid out)
B-beginning retained earning
A-net income
S-dividends, pref. stock, common stock
E-ending retained earnings
continuity (going concern) assumption – states that businesses are assumed to continue into the foreseeable future
Income tax expense – The amount of income tax that is associated with (matches) the net income reported on the company's income statement
What type of liability does notes payable fall under ? – Current liabilities
Order of entry in closing accounts – revenue, expenses, income summary, withdrawals
Fоr impersоnаl cоmmunicаtions, source effects mаy arise from the:
Contra revenue – Account category of: Sales Discounts.
A person or company who will receive payment on a promissory note, check, draft or money order is called the – Payee
retained earnings – Earnings of a business that are not distributed.

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