Accounting Ii Chapter 21 Vocabulary

expensed – all expenses that do not depreciate
Activity base – A measure of whatever causes the incurrence of a variable cost.For example, the total cost of x-ray film in a hospital will increase as the number of x-rays taken increases. Therefore, the number of x-rays is the activity base that explains the total cost of x-ray film.
working capital – current assets minus current liabilities
Not allowed – Reserves ex. Warranty
Stock for Control – Is the ability to determine the operating and financing policies of another company through ownership of voting stock (company owns more than 50% of the outstanding voting shares).
qualities of used information – relevance, faithful representation, comparability, consistency
At a minimum, the duty of care of the accountant entails compliance with which of the following?
Долговой сертификат – Certificate of indebtedness
Sales revenue – The primary source of revenue in a merchandising company.
Materiality – The impact of financial accounting information on investors' and creditors' decisions.
liabilities – Verbindlichkeiten
No – Production of a TV commercial deductible?
working capital – = current assets- current liabilities
11. A company breaks even in all of the following cases except
1. Its total cost exactly equals its total revenues
2. Its net income is zero
3. Its total revenues exactly equal its fixed costs
4. Its total contribution margin exactly equals its fixed costs – 3. Its total revenues exactly equal its fixed costs
At а minimum, the duty оf cаre оf the аccоuntant entails compliance with which of the following?
time period assumption – the life of a business can be divided into meaningful time periods EX: every quarter the books close
Sales Journal – Used for recording sale of merchandise on credit
Australian Business Number (ABN) – is a single identifying number that a business uses when dealing with other businesses, government departments and agencies.
Net Profit/Surplus – Excess of income over expenditure.
Total Revenue > Total Expenses
Profit = Revenue – Expenses

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