Principles Of Accounting Level 1 Chapter 1

Equity – the total financial claims to the assets, or property, of a business.
Indirect Materials – The cost of material to make one product is not cost beneficial to determine and is considered a part of manufacturing overhead
depreciation expense – the amount of an asset's cost that is allocated to expense during an accounting period
Balance trial – Оборотно-сальдовая ведомость
Accountant – someone who maintains and audits business accounts
Accounting Equation – an equation showing the relationship among assets, liabilities, and owner's equity
tipos de cambio vigentes al cierre del ejercicio o período – exchange rate prevailing at year end or at period end
Why is Venus so much hotter than Earth?
Income Statement – Financial statement that subtracts expenses from revenues to yield a net income or loss over a specified period of time; also includes any gains or losses.
*matching concept (or matching principle)* – A concept of accounting in which expenses are matched with the revenue generated during a period by those expenses.
partnership – 2 or more individuals
Why is Venus sо much hоtter thаn Eаrth?
Terms of sale – an agreement between a buyer and a seller about payment for merchandise
Temporary account – Account used to accumulated information until it is transferred to the owner's capital account.
Variable Costs – Change in total in direct proportion to changes in volume (number of units made or sold); The Cost per unit DOES NOT change; Examples: DM, DL, Variable Manufacturing Overhead, commission, payroll taxes on DL; Selling costs paid only when a product is sold are variable costs; (payroll taxes are based on employees income)
The differences between the increases and decreases in an account – Account balance

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