Weisinger Accounting Ch 5

Certified Management Accountant (CMA) – test for budgeting, performance management cost management financial statement analysis
batch report – A report of credit card sales produced by a point-of-sale terminal
Audit – An examination of the financial reports to ensure that they represent what they claim and conform with generally accepted accounting principles.
CURRENT ASSETS – ASSETS THAT ARE EXPECTED TO BE CONVERTED TO CASH, SOLD OR USED UP DURING THE NEXT 12 MONTHS, OR WITHIN THE BUSINESS'S NORMAL OPERATING CYCLE IF THE CYCLE IS LONGER THAN A YEAR (UNCOMMON)
Expense – a decrease in owner's equity resulting from the operation of a business
Trade discount – a reduction in the list price granted to customers
operaciones discontinuadas – discontinuing operations
What type of liability does accounts payable fall under? – Current Liabilities
Reporting Inventory Information – Calculating relationship of income statement items with balance sheet items; ROE=Income/Eqity; ROA=Income/Assets
Identify the Muscle at “5”
revenue recognition principle – revenue should be recognized when it is EARNED and collection is easily assured
Purchases – a temporary owner's equity account used to record the buying of merchandise for resale.
Monetary unit assumption – Requires that companies include in the accounting records only transaction data that can be expressed in money terms
A decrease in net worth due to excess of costs and expenses over income is – Loss
Fair value principle – Indicates that assets and liabilities should be reported at fair value
buildings – long-term liability, BS, debit
Identify the Muscle аt “5”
How much would that be cost? – Was würde das kosten?
Define Controls – Controls are procedures and methods used to protect assets, monitor cash payments, ensure transactions are authorized and generally make sure the accounting records are accurate.

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