Principles Of Accounting Level 1 Chapter 1

PE ratio – share price/earnings per share
Partnership – An unincorporated business owned by two or more persons.
A – The steps in the accounting cycle for a merchandising company are the same as those in a service company except:
A. an additional adjusting journal entry for inventory may be needed in a merchandising company.
B. closing journal entries are not required for a merchandising company.
C. a post-closing trial balance is not required for a merchandising company.
D. a multiple-step income statement is required for a merchandising company
LONG-TERM LIABILITIES – LIABILITIES THAT ARE NOT CURRENT

1. LONG TERM INVESTMENTS
2. PP&E – PROPERTY, PLANT & EQUIPMENT (PLANT ASSETS)
3. INTANGIBLE ASSETS – OWNED RESOURCES THAT GIVE US SOME TYPE OF RIGHTS (COPYRIGHT, PATENT, FRANCHISE RIGHTS)
4. OTHER ASSETS – ANYTHING THAT DOESN'T FIT INTO THE OTHER CATEGORIES

external transactions – transactions the firm conduct with a separate economic entity.
Costs of Goods Sold – 1. Expense
2. Income statement
3. Debit
4. Temporary
Contributed capital – The amount of equity a company generates through the sale of stock to investors
Ledger – Record containing all accounts (with amounts) for a business also called a general ledger.
Phil Casey , Withdraw – acc. from taken out of business for use
Compare and contrast Cultural Materialist and Interpretive theories of anthropology.
Miscellaneous expense – Expense
Petty Cash – An amount of cash kept on hand and used for making small payments.
balance sheet or Statement of Financial Position – 3rd financial statement prepared
is what is on the accounting equation
point in time (as of date)
historical valuation
based on accrual accounting
unexpired costs
Assets – Things of value with a specific dollar amount owned by a business/person.
Cоmpаre аnd cоntrаst Cultural Materialist and Interpretive theоries of anthropology.
Time period assumption – Presumes that the life of a company can be divided into time periods, such as months and years , and that useful reports can be prepared for those periods.
deposits in transit – bank has not yet recorded company's deposit on books
What causes a reduction In the par or started value per share? – Stock split

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