Financial Accounting Ch 8

straight-line depreciation – produces equal amounts of depreciation expense each year
True – T or F: When cash is received from a sale, the total amount of both assets and owner's equity is increased.
Retail Business – A business that sells directly to individual consumers.
Liabilities – Creditors' claims on an organization's assets; involves a probable future payment of assets, products, or services, that a company is obligated to make due to past transactions or events
Closing Entries – The transferal of the balances of the temporary accounts to the capital account
Accrued expenditures – Charges incurred by the recipient during a given period requiring the provision of funds for:
(1) goods and other tangible property received;
(2) services performed by employees, contractors, sub-recipients, and other payees; and,
(3) other amounts becoming owed under programs for which no current services or performance is required.
Proprietorship – (see Sole proprietorship)
Long- Term investment – A long- term asset category that includes investment in bonds or stocks in which the company intends to hold the investment for longer than one year.
The amount of cash loans that the company received from the bank during the year – Cash flows from financing activities
​Source Document – A business paper from which information is obtained for a journal entry
Consumer behavior may be defined as those behaviors performed by _______ in the purchase, usage, and disposal of goods and services.
Bank statement – Report of deposits, withdrawals, & bank balances sent to a depositor by a bank
Revenues – reported goods and services that have been solds to a customer whether of not they have yet been paid for, total sales (cash and credit)
Proprietorship – A business Owned by one person
service business – a sevice that performs an activity for a fee
Deficit – Negative balance in retained earnings caused by net losses over a period of years.
Cоnsumer behаviоr mаy be defined аs thоse behaviors performed by _______ in the purchase, usage, and disposal of goods and services.
Using a budgeted income statement to plan – …
Internally Created Intangibles – Generally expensed; only capitalize direct cots incurred in obtaining the intangible, such as legal fees
capital account – an account used to summarize the owners equity in a business
subsidiary ledger – a ledger that is summarized in a single general ledger account

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