Accountingcentury 21

DECENTRALIZATION – THE DELEGATION OF DECISION-MAKING AUTHORITY THROUGHOUT AN ORGANIZATION BY GIVING MANAGERS THE AUTHORITY TO MAKE DECISIONS RELATING TO THEIR AREA OF RESPONSIBILITY
Under the LCM approach market value is defined as
A. FIFO cost.
B. LIFO cost.
C. current replacement cost.
D. selling price. – C
Accounting records – Organized summaries of a business's financial activities.
Historical Cost Concept – Transactions are reported at the amount of cash paid or payable at the time of the transaction. This means that assets are reported at their original purchases price when acquired.
What are some example of operating expenses – Bad debt, uninsured loss, comp and collision,
​General Amount Column – A journal amount column that is not headed with an account title
Accounts – Cash, receivable, payable
Nominal account – Debit: Expenses/losses
Credit: Gains/income
Statement of Financial Condition; Balance Sheet – The report that shows the financial condition of the business at a point in time is called the
Payable – is used to refer to a liability that promises a future OUTFLOW of resources.

*Accounts Payable

Identify the Lymphatic Vessel (White) at “B”
Generally accepted accounting principles – Are the rules standards and practices that companies are expected to follow when preparing their financial statements
Non-Current Asset – (Long-Term Asset)
an asset that is expected to be converted to cash, sold, or consumed after the next 12 months, or after the business's normal operating cycle if longer than a year
Consequences of a poor turnover – If inventory turnover is slower than it should be the business is wasting/tying up cash on storage and insurance costs and s also likely to be finding it more difficult to meet current debts as inventory is not turning into cash fast enough. There is a greater risk that inventory will deteriorate/become out of date making it even harder to sell
Identify the Lymphаtic Vessel (White) аt “B”
payroll employee deductions – debit salaries expense, credit FICA-SS, credit FICA-medicare, credit employee federal income tax payable, credit employee medical insurance payable, employee union clues payable, credit salaries payable.
Contra Account. – An account designed to accumulate totals to offset a related account.
The cost of a machine purchased last year will be irrelevant in a decision for next year. – True

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply