Intro To Accounting 20653 Exam 4 Laurie Wood Tcu

Accounting equation – assets= liabilities + owner's equity
OE= A – L
L= A – OE
Lease – A written agreement which grants to the lessee the right to use q particular asset for the specified period of yime in return for periodic payment to the lessor.
instrumentos financieros derivados – derivative instruments
permanent or real accounts – accounts whose balances are carried over to the next accounting period- assets, liabilities, capital
temporary accounts – Accounts that do not accumulate information across accounting periods but are closed.
accounting equation – An equation showing the relationship among assets, liabilities, and owner's equity.
In a couple of sentences, compare and contrast positive and negative feedback loops. Remember “compare and contrast” means to include how they are different AND how they are alike.
trustworthy – vertrauenswürdig
Double-entry accounting – The recording of debit and credit parts of a transaction
Under a perpetual inventory system, which of the following is not part of the journal entries made when merchandise is sold on credit?
A. credit the Cost of Goods Sold account.
B. credit the Sales Revenue account.
C. credit the Inventory account.
D. debit the Accounts Receivable account. – A
Net Income – net earnings, profit, selling more than the cost of producing (revenue – expenses, the bottom line), the excess of total revenues over total expenses
Quick Ratio – Quick assets / Current Liabilities

Quick Assets: cash, short-term marketables, accounts rec.

Amnt of quick assets to quickly pay of liab

What are the 4 accounting assumptions? – 1. Separate entity
2. Continuity or "going concern"
3. Unit if measure
4. Time period
consistancy – companies use the same accounting methods year to year
In а cоuple оf sentences, cоmpаre аnd contrast positive and negative feedback loops. Remember “compare and contrast” means to include how they are different AND how they are alike.
What are the two biggest factors affecting an accounting system? pp 6 – 1. the company's needs for accounting information and
2. the resources available for the operation of the system
Economic plausibility is an important criterion for choosing a cost driver. – True

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