Century 21 Accounting Chapter 1

In balance – a condition in which the total of the debits and the total of the credits are equal in an account.
LONG-TERM LIABILITIES – LIABILITIES THAT ARE NOT CURRENT

1. LONG TERM INVESTMENTS
2. PP&E – PROPERTY, PLANT & EQUIPMENT (PLANT ASSETS)
3. INTANGIBLE ASSETS – OWNED RESOURCES THAT GIVE US SOME TYPE OF RIGHTS (COPYRIGHT, PATENT, FRANCHISE RIGHTS)
4. OTHER ASSETS – ANYTHING THAT DOESN'T FIT INTO THE OTHER CATEGORIES

owners equity – The amount remaining after the value of all liabilities is subtracted from the value of all assets
HISTORICAL COST PRINCIPLE – Market value changes are not recognized in the accounting records
Bank over draft – Advantage:
– provide a saftey net for firms with irregular payments
– most banks are happy for the account to remain over drawn ad longd as it does not exceed the overdraft limit
– readily accessible
-flexible

Disadvantage:
-high interest charge
-can be recalled at short notice

1st Step of Analying Transactions – Identify Accounts affected
Bank statement – Report of deposits, withdrawals, & bank balances sent to a depositor by a bank
When a neurotransmitter like acetylcholine is acting in an excitatory manner which of the following is likely a result of the acetylcholine acting on the post synaptic cell?
Common Stock – The stock issued by a corporation when it is authorized to issue only one class of stock.
Manufacturing cost – Direct labour plus direct materials plus overhead. Are product costs
Salries – Monthly payment for a pernament employee
GAAP – Generally Accepted Accounting Principles – specify acceptable practices
Balance Sheet – a record of the financial situation of an institution on a particular date by listing its assets and the claims against those assets
current ratio – current assets/ current liabilities
The ultimate objective of accounting information – Decision Usefullness
When а neurоtrаnsmitter like аcetylchоline is acting in an excitatоry manner which of the following is likely a result of the acetylcholine acting on the post synaptic cell?
accounting cycle – process that begins with the recording of transaction into journal and ends with a completion of a post-closing trial balance
single-step income statement – an income statement in which all expenses are added together and subtracted from all revenues
treasury stock – stock reacquired by the issuing corp
-reduction stockholders' equity
-reduces the # of shares outstanding
-reduces cash

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply