Century 21 Accounting Chapter 3

Statement Of Retained Earnings – Reports how the company retained earnings balance changed from the beginning to the end of the period
Intangible Asset – Intellectual property. Patent, trademark, copyrights, business methodologies
capital account – an account used to summarize the owner's equity in a business
note payable – formal promise, usually denoted by the signing of a promissory note, to pay at a future amount
External Decision Makers – investors, creditors, suppliers, and customers: parties outside the firm
4 Example of Adjustments – Examples of adjustments include recognition of unearned revenue, recognition of prepaid, expenses, accrual of interest expense and depreciation.
Wealth – Static measure that represents a stock at a point in time
contra liability – HST refundable
An entity-relationship diagram
classified balance sheet is – a companies assets, liabilities and stockholders equity accounts into several standard categories.
accrual basis – Revenues are recognized when earned and expenses are recognized when incurred.
Relevance – The quality of information that indicates the information makes a difference in a decision
Charted – Accounting firm with people/business as clients
An entity-relаtiоnship diаgrаm
temporary accounts – revenue, expenses dividends
Accounts Receivable – The right to receive cash in the future from customers for good sold or for services performed
Invoice – A form describing the goods or services sold, the quantity and the price

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