Accounting: Chapter 1

Balance Sheet – Reports:
1. What the company has and uses to operate the business; called assets
2. What the company owes; called liabilities
3. The amount of the company owned by the owners; called stockholders' equity.
All amounts reported are CUMULATIVE of a specific date.
nonoperating section – a report of revenues and expenses resulting from secondary or auxiliary activities of the company
Work sheet – a working paper used to collect information from ledger accounts for use in completing end-of-fiscal-period work.
accounting – the information system that measures business activities, processes that information into reports and financial statements, and communicates the results to decision makers.
Usually long term nature. No physical substance, but value of owners of the organization – Intangible assets
debit – assets, expenses, dividends (ADE)
Going concern assumption – Accountants assume that a company will continue to operate into the foreseeable future
The lump sum budgeted for fixed overhead will always be the same amount for the static budget and the flexible budget. – True
Petty Cash Voucher – A form used to record the payments made from a petty cash fund.
All of the following are best practices in preparing class diagrams except
Capital Stock – Normal Balance: Credit
Type of Account: Owner's Equity
Financial Statement: BS
Manufacturing Business – a business that buys raw materials and transforms them into finished products.
How much did the company pay to purchase property and equipment during the year ended December 31, 2002? – 2002 Cash Flow Statement
Retained earnings – Stockholders' Equity
All оf the fоllоwing аre best prаctices in prepаring class diagrams except
Net Loss – The results of operations that occurs when total expenses are greater than total revenues

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply