Accounting General Journal, 9e: Chapter 01

accounting records – organized summaries of a business's financial activities.
W2 form – Wage and Tax Statement; a report furnished by the employer for each employee indicating gross earnings and deductions.
paid-in capital – The amount of stockholder's equity that stockholders have contributed to the corporation. Also called contributed capital.
A annual report is for – Shareholders
credit – recorded on the right side
Withdrawals – assets taken from business by the owners for personal users
Modem – A device used to transmit data through telephone lines.
business entity – The accounting assumption that a business exists indepently of its owners personal holdings. The accounting records amd reports are maintained separatly and contain financial information related only to the business
Which of the following is punishable by imprisonment for more than one year or death?
Net income – Amount earned after subtracting all expenses necessary for and matched with sales for a period; also called income, profit, or earnings. (p.23)
what accounts after closing should = zero – revenue, expense, and devidends
historical cost principal – we must only record what we actually paid for it
Qualitative characteristic being employed when companies in the same industry are using the same accounting principles. – Comparability.
income statement – a financial statement listing an entity's revenues, expenses, and net income or net loss for a specific period. Also called statement of operations.
transposition – order of digits changed by mistake
notes receivable can bee short–term (one year or less) or long-term (more than one year) depending on when the company expects to be repaid – …
Which оf the fоllоwing is punishаble by imprisonment for more thаn one yeаr or death?
Notes recievable (due in 6 months) – Current Liability
Why is depreciation necessary – The cost of long-term asset must be matched to the time period in which the asset is used to generate revenue.
unadjusted trial balance – List of accounts and balances prepared before accounting adjustments are recorded and posted.
notes – valuing noncurrent receivables and payables that carry no stated interest rate or a lower than market interest rate

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