Chapter 1 Introduction To Accounting

journal – provides a chronolgoical record of all transactions affecting a firm.
Management accounting information focuses on external reporting. – False
9 – What step in the accounting process is Post Closing trial balance?
Commercial Paper – amounts owed to investors that must be repaid in less than 180 days; Interest is charged at a low rate because the money is borrowed for a short period of time;
Dividends – distribution of earnings from the company to shareholders
Adjusting Entry – Recognizes portion earned as revenue and reduces the balance of a liability account. Done so that the financial statements reflect the revenues that have been earned and the expenses that were incurred. Involves one income statement account and one balance sheet account. (The purpose of each adjusting entry is to get both the income statement and the balance sheet to be accurate.)
Capital Lease – A lease where it requires the lessee to report a long-term lease obligation on the balance sheet.
The value of understanding consumer behavior depends on the perspective from which consumer behavior is viewed. Which of the following is not one of the perspectives discussed in the class lecture?
Petty cash funds – A cash fund used to pay relatively small amounts.
An audit is done by ____ for the purpose of giving an opinion that the financial statements are materially stated in accordance with GAAP. – a certified public accountant
The vаlue оf understаnding cоnsumer behаviоr depends on the perspective from which consumer behavior is viewed. Which of the following is not one of the perspectives discussed in the class lecture?
Cash basis Accounting – the system of preparing financial statements based on recognizing revenues when the cash is received and reporting expense when the cash is paid
Withdrawls – Assets taken out of a business for the owner's personal use
37. Which of the following accounts appears in the statement of stockholders' equity?
A. Supplies.
B. Cash.
C. Salaries Payable.
D. Retained Earnings. – D. Retained Earnings.
understandability – the quality of accounting information that makes it comprehensible to those willing to spend the necessary time

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