Financial Accounting Ch 1 Dj

Sales Discounts – a contra-revenue account, meaning that its balance is subtracted from Sales Revenue
Income statement – describes a companies revenues and expenses along with the resulting net incomeor loss over a period of time due to earnings activities.
Contribution approach – an income statement format that organizes costs by their behavior. costs are separated into variable and fixed categories rather than being separated into product and period costs for external reporting purposes (p43)
owner's equity – basic def, 3 – earnings kept in the company and financing provided by the owners

1) owner investments in the company (cash contributed in return for ownership)

2) less: payments to owners (dividends)

3) plus profits and losses (also called net income)

ABC systems always provide decision-making benefits that exceed implementation costs. – False
Occupational fraud – Deliberate misuse of employers resources
The verb SER Indicate the correct verb form to complete the sentence. Yo [1] inteligente y paciente. Tú [2] de Texas.  Usted [3] tolerante y flexible.  
Revenues-sales discounts-sales return-sales allowance – Net sales
A business reansaction that involves a a purchased ON ACCOUNT – is considered to be a credit transaction.
The verb SER Indicаte the cоrrect verb fоrm tо complete the sentence. Yo [1] inteligente y pаciente. Tú [2] de Texаs.  Usted [3] tolerante y flexible.  
Cash flow process – 1) Cash on hand at the beginning of the period
2) Cash received during the period
3) Cash spent during the period
4) Cash on hand at the end of the period

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