Financial Accounting: Ch 3 Adjusting The Accounts

statement of cash flows – Reports cash receipts and cash payments classified according to the entity's major activites: operating, investing, and financing.
Receipt – Business form giving written acknowledgement for cash recieved
expenses – decrease in retained earnings that results from operations; the cost of doing business; opposite of revenues.
External auditor – Independent of a company and are hired to assess and evaluate the fairness of financial statements (or to perform other contracted financial services)
Time Value of Money – A dollar can be invested today and earn a return over time. A dollar held today is worth more than a dollar received a year from now. A dollar held today can be invested to earn; therefore, it is worth more to have it today than in the future.
Actual OH < OH applied – overapplied (subtract from COGS)
Mark up – the amount added to the cost of merchandise to establish a selling price
statement of cash flows – reports inflows and outflows of cash for a stated period of time
Impairment – The write-off when some or all of the book value of an asset is not recoverable
Sanctions – These are a vital component of accountability. If there are no consequences for state actors when they don't meet commitments and standards, the entire accountability process fails. Even with the most comprehensive and insightful information on state performance, no-one can be held accountable unless there are sanctions for misconduct and non-achievement.
An air mass is a body of air with ______________________.
REVENUE expenditures – do not provide benefits to future periods (CURRENT)
*expenses when incurred
callable bonds – corporations can "call in" and change the interest rate; can retire them at a state amount prior to the maturity date
An аir mаss is а bоdy оf air with ______________________.
capital – the account used to summarize the owners equity in a business

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