Financial Accounting Ch 1 Dj

Net Loss – When expenses exceed revenues
owner's equity – The owner's right to the assets of the business.
stock exchange – marketplace where buyers and sellers exchange their shares of stock. Buying and selling shares of stock can also be done on the internet
management accounting – information is designed to meet the specific needs of a company management
Disclosure notes would not include – Data to adjust the financial statements so that they are not misleading.
Expenses – an expense is an outflow of money to another person or group to pay for an item or service, or for a category of costs.
Начисление, поступление – Accrual
Posting. – The transferal of data from the journal to the ledger.
If n = infinity and i=20%, then the present value of a series of “A” = $100 is equal to $500.
Direct Method – Format directly states the amount of cash that is collected and the amount of cash that is paid for specific items during the period. Everything from Investing down is the same as Indirect Method.
THE DIRECT METHOD IS FAVORED BY FASB AND IASB. Very few companies use direct method.
3 types of business activities – financing, investing, and operating
Судебная бухгалтерия – Forensic accounting
Cost of goods sold – Cost of goods manufactured+1st finished goods-2nd finished goods
Earnings Per Share – Net Income-dividends on preferred stock/Average Shares of common stock outstanding
If n = infinity аnd i=20%, then the present vаlue оf а series оf “A” = $100 is equal tо $500.
Prepaid Advertising – 1. Asset
2. Balance Sheet
3. Debit
4. Permanent
matching principle – ( expense recognition) Company must record expenses made to make revenue

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