Accounts, Debits And Credits

Building ( net) – Property and equipment
When looking at the financial feasibility analysis, the business plan must document what 3 areas – Expected start-up cost
Expenses
Capital equipment needed
Liabilities – Debts or obligations of a business.
partnership – 2 or more owners. no separation with owner & business
Accrual Basis – revenues & expenses that are reported in the income period they were incurred
Able Co. has $500,000 in assets and $400,000 in liabilities; therefore, the equity is $100,000. – True
income statement – which financial statement is DEPRECIATION EXPENSE usually found
Operating Cycle (cash to cash) – The process of taking cash to inventory then selling the inventory creating a receivable and then back to cash.
sales discounts – a temporary owner's equity contra account used to record discounts given to customers as an incentive for prompt payment.
Which of the following statements about return on investment is false? 
Account – A form in which changes caused by transactions are recorded.
The Consistency Principle – Business should apply the same accounting choices and methods year after year
General ledger – A ledger that contains all accounts needed to prepare financial statements
Quick assets – Cash
Marketable securities
Account receivables
Receipts – an amount of money coming into the business
ajustes para arribar al flujo neto de efectivo proveniente de las actividades operativas – adjustments to achieve net cash flows provided by operating activities
Which оf the fоllоwing stаtements аbout return on investment is fаlse? 
GAAP – "Generally accepted" an authoritative accounting rule-making body has established a principle of reporting in a given area or that over time a given practice has been accepted as appropriated because of its universal applications.
Concept that a company records its transactions based on the dollars exchanged at the time the transaction occurred – Historical Cost Concept
DEBIT Cash and Sales Discounts, CREDIT Accounts Receivable – To record cash received from another company for the balance due of merchandise sold with discount.
What type of fund is a debt service fund? – Governmental fund
what is the FASB and what do they do – financial accounting standards board
set both broad and specific principles

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