Accounting Chapter 4

post-closing trial balance – a list of permanent accounts and their balances after a company has journalized and posted closing entries
matching principle – A principle that requires the matching of revenues earned during an accounting period with the expenses incurred to produce the revenues
Retained Earnings – Normal Balance: Credit
Type of Account: Owner's Equity
Financial Statement: BS
Income – An inflow or enhancement of economic befits that increases assets or reduces liabilities – comprises or revenue and gains
​Providing Cash – Determining that the amount of cash agrees with the accounting records
activity drivers – factors that measure the consumption of activities
by products and other cost objects.
Acid Test Ratio (Quick Ratio) – Cash + Current Investments + Accounts Receivable / Current Liabilities
Ecstasy and LSD are two synthetic types of this psychoactive drug.
American Institute of Certified Public Accountants – The professional organization for certified public accountants
IAS2 Inventories – * Requires inventories are valued at the lower of cost and net realisable value
* COST – purchase price + any costs incurred to bring product to where it is
* NRV – estimated selling price – costs necessary to bring product into a selling condition
What balance amounts are placed in the balance sheet and income statement debit and credit columns? – Updated balances
The accounts payable account would be shown on the – Balance sheet
Ecstаsy аnd LSD аre twо synthetic types оf this psychоactive drug.
limited liability company – a business form consisting of one or more persons or entities filing an operation agreement with a state to conduct business with limiete liability to the owenrs yet treated as a partnership for tax ourpose

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