Accounting

full disclosure principle – requires a company to report the details behind financial statements that would impact users' decisions.
Descending Order Of Liquidity – Assets that are arranged from the most liquid asset to the least liquid assets.
Accrued Revenue – services are performed, cash to be collected from customer later
Other revenues and expenses – NOT day to day business
ie: Interest expense, gains or losses, rent income, interest income, dividend income
monetary unit assumption – items on financial statement are measured in monetary units EX: US dollars
relevance – capacity to make a difference
: Information that is relevant is capable of making a difference in a business decision. To be
relevant, information must be TIMELy and have PREDICTIVE and/or FEEDBACK VALUE. In order for data to
have predictive and/or feedback value, it must be prepared consistently
  Larry David hires Jerry Seinfeld, a CPA, to audit his financial statements. The engagement letter includes a statement acknowledging that audited financial statements are required to be filed with a regulatory body by March 1. Jerry Seinfeld does not complete the audit until March 5. Larry David is late filing the financial statements and is fined $100,000 by the regulatory body. Larry David would most likely sue Jerry Seinfeld claiming:
current asset is – converted to cash or used within one year.
This journal is used to record year end adjustments – general journal
statement of owner's equity – explains changes in equity from net income (or loss) and from any owner investments and withdrawals over a period of time.
PURCHASE RETURNS – A SITUATION IN WHICH BUSINESSES ALLOW PURCHASERS TO RETURN MERCHANDISE THAT IS DEFECTIVE, DAMAGED OR OTHERWISE UNSUITABLE.
retail sales tax – a tax imposed on tangible personal property sold at retail
  Lаrry Dаvid hires Jerry Seinfeld, а CPA, tо audit his financial statements. The engagement letter includes a statement acknоwledging that audited financial statements are required tо be filed with a regulatory body by March 1. Jerry Seinfeld does not complete the audit until March 5. Larry David is late filing the financial statements and is fined $100,000 by the regulatory body. Larry David would most likely sue Jerry Seinfeld claiming:
working capital – kapitał obrotowy
accounts payable – current liab
What are some factors that affect a company's control environment? – 1. the integrity, ethical values, and compentence of the company's personnel
2. management's philosophy and operating style
3. management's assignment of authority and responsibility
4. prodcedures for the hiring and training of personnel and
5. oversight by the board of directors

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