Accounting Chapter One Vocab

posting – the transferal of data from the journal to the ledger
Permanent accounts – accounts used to accumulate information from one fiscal period to the next
Assets – the possessions of people or businesses, such as cash and equipment
Cash Receipts Journal. – A book of original entries in which only cash receipts are recorded.
supplies – items that are used up in day to day operations, must be continuously replaced
Provisions and one time fees – add back when its an expense
subtract when its an income
ex) impairment, lawsuits, integration, restructuring
*rentals we assume are not one time
The break-up of Pangaea resulted in
Amounts of Return / Amount of Investment – = Rate of return
Invoice – A seller's request for payment from the purchaser.
Return on Assets – net income/ avg total assets
remittance book – Überweisungsbuch
The breаk-up оf Pаngаea resulted in
common stock authorized – maximum number of shares a corporation can sell
Invoice – is a primary record issued by a supplier, providing details of charges to the customer for goods or services supplied on credit.
What is the residual value of an asset? – The residual value of an asset is the value the asset can be sold for at the end of it's useful life.
Financial accounting standards board – FASB

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