# Accounting Unit 2

Provisions for Income Taxes – How much must be paid to the federal government for earnings this year. [Reading Financial Statements] INCOME STMT
advances from customers – current liab
Liquidity – A measure of how quickly an item can be converted to cash.
Debit – Left side of a t account
liability – something owed to another business entity
Abnormal spoilage costs are not considered inventoriable costs under a job-costing system. – True
To prove they provide adequate protection against head injuries, bicycle helmets must be able to withstand government impact tests without cracking more than 10% of the time. A new helmet design has just been introduced. The new helmet is thought to be more stylish than older helmets, but consumer groups are worried that it may not pass government impact tests and will not provide adequate protection.   1000 of the new helmets are randomly sampled and tested. Of these sampled helmets, 113 of them cracked. Test the hypothesis that the new helmets will crack more than 10% time when enduring the impact tests. Assume independence. Use .05 as the level of significance.   The null hypothesis is: H0: [null] The alternative hypothesis is: Ha: [alternative]
Proprietorship – A business owned by one person
TEST!! Free cash flow – Operating cash flow + investing cash flow
(cash flows) borrowing (issuing notes or bonds payable) – financing activities (add)
Stocks – Equity of a corporation divided into ownership units; also called shares.
Tо prоve they prоvide аdequаte protection аgainst head injuries, bicycle helmets must be able to withstand government impact tests without cracking more than 10% of the time. A new helmet design has just been introduced. The new helmet is thought to be more stylish than older helmets, but consumer groups are worried that it may not pass government impact tests and will not provide adequate protection.   1000 of the new helmets are randomly sampled and tested. Of these sampled helmets, 113 of them cracked. Test the hypothesis that the new helmets will crack more than 10% time when enduring the impact tests. Assume independence. Use .05 as the level of significance.   The null hypothesis is: H0: [null] The alternative hypothesis is: Ha: [alternative]
General ledger – is the collection of all the ledgers, each showing the current balance of an account after various transactions, the P.R. (page recorded on the General Journal: J1) and the whether the account is a debit or credit.
Purchasing a laptop computer on account will:
A) increase total assets
B) have no effect on stockholders equity
C) increase total liabilities
D) all of the above – D) All of the above

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