Accounting Test Suppl Questions

Financial statements – Periodic reports published by
the company for the purpose of providing information
to external users.
The owner invests personal $ in the business, liabilities __ – No effect
deposits in transit – bank has not yet recorded company's deposit on books
claims – the assets of a business belong to the resource providers (creditors and investors)
Average total assets – (Beginning Total Assets + Ending Total Assets) / 2
Long term assets – Not used up in a year.
A ____ is a written document that states how an organization plans to protect the company’s information technology assets.
Owners Equity – the owner's claims to the assets of the business.
Service Revenue – Normal Balance: Credit
Type of Account: Revenue
Financial Statement: IS
Annuity – Stream of equal payments over equal time periods
cost of goods manufacturing – make the good, the total cost of making products that are available for sale during the period
Subsidiary Ledgers – Ledgers which contain the details for a general ledger account. Common ones are accounts payable and accounts receivable.
Internal users – Persons using accounting information who are directly involved in managing the organization. (p.5)
A ____ is а written dоcument thаt stаtes hоw an оrganization plans to protect the company’s information technology assets.
stop payment order – a written notice that tells the bank not to pay a certain check
comparative balance sheets – balance sheets from consecutive fiscal years for a single company. The ending balnce sheet for one fiscal year is the beginning balance sheet for the next fiscal year

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