Accounting: Chapter 6 Vocab

Going concern assumption – Assumes the entity will continue indefinitely
Which of the following costs always differ among future alternatives?
a. fixed costs
b. historical costs
c. relevant costs
d. variable costs – c. relevant costs
Debits – Increase assets; decrease liabilities and stockholders' equity.
Comparability – Different companies use the same accounting principles, especially in the same industry
what is SEC? – U.S securities and Exchange commision – an angency whose primary focus is to regulate the interstate sale of stocks and bonds
Chart of Accounts – A list of all accounts used by a business.
The largest minoritygroup in American society is currently:
cash discount – A deduction that a vendor allows on the invoice amount to encourage prompt payment.
revenues – the amounts a business earns; examples are fees earned for performing services, sales of merchandise, rent income, and interest income. They may be in the form of cash, credit card receipts, or accounts receivable.
The cost of utilities that the company used during the year – Expenses
Hughes Company has a credit balance of $5,000 in its Allowance for Doubtful Accounts before any adjustments are made at the end of the year. Based on the review and aging of its accounts receivable at the end of the year, Hughes estimates that $60,000 of its receivables are uncollectible. The amount of bad debts expense which should be reported for the year is
A. $5,000.
B. $55,000.
C. $60,000.
D. $65,000. – B
Inventory – …Is a Debit balance account.
depreciation provisions – przepisy amortyzacji
The lаrgest minоritygrоup in Americаn sоciety is currently:
Bond sinking fund – Cash reserve set aside for repayment of bond

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