Accounting Unit 1

Credit – an agreement to pay for a purchase at a later time, an entry to the right side of a T account.
*assets* – The resources owned by a business.
Revenue,Income Statement, Credit, Temporary – Interest Revenue
Absentee owners – Shareholders in large businesses
equities – financial rigths to the asset of a business
Permanent Account – An account that is kept open from one accounting period to the next.
To Pay a Dividend, A company must: – – have enough retained earnings to declare the dividend
– have enough cash to pay the dividend
The board of directors has the ability to declare a dividend; becomes a liability once declared.
1) Debit retained earnings, credit dividends payable
2) Debit dividends payable, credit cash
Land tax – is a tax on land owned by individuals or organisations.
General Purpose of Cash Budgeted Income Statement – 2) Budgeted Income Statement which shows all expected "Estimate Revenues and Less Estimate Expenses" It then calculates the firms "Estimate Net Profit(Loss)"
Income Statement – Summarizes the revenues earned and expenses incurred by a business over an accounting period.
A spider diagram depicted was developed to analyze a project.  The base case for the project was:  Initial Cost                  Annual Savings           Salvage value              Project Life      10,000                      :  $2000,                        $1000                         8 years From the diagram, which cash flow element has the least effect on the present worth?
Trademark – Is an exclusive legal right to use a special name, image, or slogan.
True or False:

Most companies uses cash basis accounting – False. They use accrual accounting.

A spider diаgrаm depicted wаs develоped tо analyze a prоject.  The base case for the project was:  Initial Cost                  Annual Savings           Salvage value              Project Life      10,000                      :  $2000,                        $1000                         8 years From the diagram, which cash flow element has the least effect on the present worth?
A planned process for providing financial information that will be useful to management – Accounting System

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