Weisinger Accounting Ch 4

Property – items of value that are owned or controlled by a business; economic resource or a business.
accounts payable – oral or implied promised to pay later
intangible assets increase when… – the company buys the intangible asset
assets – Resources available for use by the business – that is, anything owned by the business that has monetary value
Consumer market – all customers who purchase goods and services for personal use
Expense – a decrease in owner's equity resulting from the operation of a business
Payments – Monies received from debtors
The warming of the lower atmosphere (the greenhouse effect) results from the
Period reporting – The life of the business is broken up into periods of equal length for reporting purposes.
To calculate the profit for the year and make decisions using the information.
amortization – process by which the cost of an intangible asset is allocated to the acct. periods benefitted
Current Liabilities – Obligations due within one year or within the operating cycle if longer than a year.
-2 kinds: known amounts and estimated amounts
Wages Payable – …Is a Credit balance account.
Accounting Equation – An equation showing the relationship among assets, liabilities , and owners equity
Transfer of capital asset from GF to WF – DR asset
CR capital contribution
(GJ only in WF)
The wаrming оf the lоwer аtmоsphere (the greenhouse effect) results from the
revenue principle – record revenue when "earned" earned= when service provided or goods delivered.
Temporary owner's equity – accounts accounts utilized to accumulated income, expenses, and owner's withdrawals for one accounting period only.
What are the five components of internal control? – The five compnentts of internal control, as discussed in Internal Control-Integrated Framework (Committee of Sponsoring Organizations of the Treadway Commission), are
1. the control enviornment,
2. risk assessment,
3. control activites,
4. information and communication, and
5. monitoring. pp 8
Accrued revenues – Revenues that have been earned but not yet received, ex. Consulting service already performed but hasn't billed customer yet

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