Financial Accounting Ch 5

Explain debits and credits and their role in the accounting system. Include in your answer an explanation of the double-entry system. – c.
Income Statement – A financial statement showing the revenue and expenses for a fiscal period
accounting cycle – The series of accounting activities included in recording financial information for a fiscal period
Current asset – An asset satisfying any of the following (1) expected to be realised in the operating cycle (2) expected to be realised in within 12 months (3) cash or cash-equivalent
active accounts – aktif hesaplar
Истощимые активы – Wasting assets
Product Cost(Manufacturing) – All costs involving in making or acquiring a product or performing a service
Accounting Element – Assets, Liabilities, Incomes and Expenses
expense – outflows or the using up of assets or increases in liabilities from ongoing operations incurred to generate revenues during the period.
A city ordered supplies with an expected cost of $7,000 for the accounting department. This amount is encumbered. The supplies are received with an invoice of $6,800. The entry to record the receipt of the supplies should include a debit to
outstanding stock – the number of shares held by investors excludes treasury shares
Current Asset – To be used relatively soon
Normal Balance – Side of account that is increased
A city оrdered supplies with аn expected cоst оf $7,000 for the аccounting depаrtment. This amount is encumbered. The supplies are received with an invoice of $6,800. The entry to record the receipt of the supplies should include a debit to
owner's equity – the amount remaining after the value of all liabilities is subtracted from the value of all assets.
What is a non-current liability? – A present obligation of the entity, from which is expected to result in an outflow of economic benefits for more than 12 months.
acrobat – One who does daring gymnastic stunts
Statement of Account. – A report sent to each customer, usually at the end of the month, which indicates the status of their account.

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