Chapter 4 Double Entry Accounting

compound entry – An entry with more than one credit or debit
Ledger – A group of accounts constitutes a
DEBIT Sales Returns and Allowances and CREDIT Accounts Receivable – To record merchandise returned to our company.
Non taxable – Club dues when the advantage is to the employer
Equity – what remains- owner's residual claim to the assets
Business – all of the activities necessary to provide the members of an economic system with goods and services
Increase in a current asset will – decrease
Closing Updates – retained earnings
net income/dividends
Cash Flow from Financing Activities, and examples – CFF- Are cash flow directly related to the financing of the enterprise itself. Example, the payment of money to investors and creditors.
owners equities – the amount remaining after the value of all liabilities is subtracted for the value of all assets.
You arrive in Thailand and need to convert USD to Baht at the rate of 34.6 Baht/ USD. If you exchange $215 dollars you will get _____ Baht. 
half yearly accounts – halbjährliche Abrechnung
Adjusting: Bad debt expense (debit) – Allowance for doubtful accounts (credit) *decreases net income and SE
credit – The action of recording a decrease to an asset, expense, or divided account.
liquidity – availability of resources to meet short-term cash requirements
invoice – a form describing the goods or services solld, the quanitity, and the price
Yоu аrrive in Thаilаnd and need tо cоnvert USD to Baht at the rate of 34.6 Baht/ USD. If you exchange $215 dollars you will get _____ Baht. 
temporary accounts – accounts used to collect infromation that will be transferred to a permanent capital account at teh end of the accounting period
allowance for doubtful accounts – current asset-contra, BS, credit
Issued Shares – Represent the total number of shares of stock that have been sold.

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