Ch4 The Accounting Cycle

physical resources – natural resources
Matching – match revenue owned for that period to when the expense is incurred.
statement of retained earnings – Reports the way that net income and distribution of dividends have affected financial position during accounting period
Dishonored (NSF) Check – A check returned to the depositor unpaid because of insufficient funds in the drawer's account; also called an NSF check.
Recognition of spoiled units when computing output units:
a. highlights the costs of normal spoilage to management
b. distorts the accounting data
c. focuses management's attention on reducing spoilage
d. Both a and c are correct. – d. Both a and c are correct.
Accounts Payable – liability, increase and normal balance is credit side, decrease is debit side
Short-term notes receivable
A. have a related allowance account called Allowance for Doubtful Notes Receivable.
B. are reported at their gross realizable value.
C. use the same estimations and computations as accounts receivable to determine cash realizable value.
D. present the same valuation problems as long-term notes receivables. – C
When acetylcholine binds to its ligand gated ion channel and the channel opens, what ion floods into the muscle fiber?
bonds payable increases when… – the company borrows money from investors
for assets debit ___; credit ___ – inc; dec
The payment of rent by cash is recorded – Debit rent expense and credit cash
When аcetylchоline binds tо its ligаnd gаted iоn channel and the channel opens, what ion floods into the muscle fiber?
Three components of a balance sheet – assets, liabilities, equity
Accounting is a system for providing financial information. List 2 principle elements – -Financial Accounting
-Managerial Accounting
Days sales outstanding – 365/(Sales/Accounts Receivables)
Accrual basis accounting – uses the adjusting , Records revenues when earned and expenses when incurred, regardless of the timing of cash receipts or payments.

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