Accounting 100

Financial Accounting – Financial accounting is concerned with the record keeping of the business and preparing the financial statements for external users.
interest payable = [type] – liabilitity
Current Liabilities – Obligations due within one year or within the operating cycle if longer than a year.
-2 kinds: known amounts and estimated amounts
salary – the money paid for employee services
ratio analysis – a technique that expresses the relationships among selected items of financial statement data
Weighted Average Method – An inventory costing method based on the weighted average cost per unit on inventory that is calculated after each purchase.
Mortgage payable – A written promise that pledges real property as security for the payment of a debt
Which of the following is not considered a component of generally accepted accounting principles?

A. FASB Implementation Guides.

B. Widely recognized industry practices.

C. Articles published in CPA journals.

D. AICPA Accounting Interpretations. – C. Articles published in CPA journals.

The basic accounting equation that must be maintained at all times – assets = liabilities + stockholders' equity
journalizing – date centered; title recorded at left-hand margin under description column & amount to be debited entered in debit column; title of account listed below & to right of debited account title & amount to be credited entered in credit column; brief description may be entered below credited account; posting reference when left blank, used later when journal entry amounts transferred to account in ledger
Which of the following does not achieve sterilization?
Purchase invoice – a document that supports each credit purchase
Items recorded that increase income when using the fair market value method are – dividends received
Which оf the fоllоwing does not аchieve sterilizаtion?
#17. Total current assets at January 1 amount to: – cash + accts receivable + inventory = $180,000
Contra – Sales Returns and Allowance is a ______ account
Source Document – The first record of a business transaction
Office Equip. – Asset / Balance sheet
Rate. – The annual percentage rate used to compute interest.

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