Ch 4 Completing The Accounting Cycle

It is best to compare this year's performance with last year's actual performance rather than this year's budget. – False
Working Capital – assets available for use in the production of further assets
Double Entry Accounting – Double Entry Bookkeeping. A process of recording capital equal debits and credits for a single business transaction.
flexibility principle – prescribes that an accounting information system be able to adapt to changes in the company
Historical Cost – What you paid for an item
Depreciation Methods – Straight line, Units of production, double declining balance
Accrual basis of accounting follows ____. – GAAP
Lack of funds – fehlende Geldmittel
proving cash – determining that the amount of cash agrees with the balance of the cash account accounting records.
Internal controls – Eliminate opportunity (fraud)
When June Star says that her grandmother “has to go everywhere we go,” she is showing her
SEC – Securities and exchange commission
equities – Financial rights to the assets of a business
Check Stub. – A form on which information is recorded by the drawer of a check concerning the check drawn; a source document.
When June Stаr sаys thаt her grandmоther “has tо gо everywhere we go,” she is showing her
withholding allowance – a deduction from total earnings for each person legally supported by a taxpayer, including the employee.
Journal – Record in which transactions are entered before they are posted to ledger accounts

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