Accountingcentury 21

Accounting entity assumption – That activities of the entity are separate from those of its owners or members
the primary purpose of a business – profit
Adjusted Trial Balance – Section of the worksheet used to verify the equality of debits and credits after the adjustments. The amounts from this section are extended to the Income Statement and Balance Sheet sections.
(on Financial statements)Earnings for the period – income statement
GAAP – generally accepted accounting principal = relevant, reliable and comparable.
matching concept – match expenses incurred w/ revenue they generated in same period
Return – Monies received from an investment; often in percent form
13. Which of the following is the best response to this pricing model: "It's OK to sell products for less than what you paid for them because that will bring you more customers."
1. Agree – the higher contribution margin from more customers will eventually allow the company to break even and then earn a profit
2. Disagree – It will take too long to break even under this model
3. Agree – it would allow the company to recover some of its fixed costs, even if the company is not profitable
4. Disagree – the more the company sells, the bigger its loss will be – 4. Disagree – the more the company sells, the bigger its loss will be
Statements of owner's equity – Report of changes in equity over a period; adjusted for increases (owner investment and net income) and for decreases (withdrawals and net loss).
How many times an hour do most college students check social media? According to a previous study, the average is 2 times per hour. Do LMC students check social media more frequently? A sample of 50 LMC students report checking social media on average about 2.5 times per hour. What are the null and alternative hypotheses?
Economic entity assumption – an assumption that requires that the activities of the entity be kept separate and distinct from the activities of its owner and all other economic entities
Supplies – Supplies
Asset
Balance Sheet
Debit
net loss – The amount by which expenses exceed revenues.
Average Collection Period Ratio – 365/receivables turnover *shows how often collected
Segregation of duties – Related tasks should be assigned to different people. One serves as check on the other. Ideally, the person who records credit sales should not be the same person who records the collections of A/R from customers. The person who records collections should be someone other than the person who opens mail and makes deposits. The related roles of purchasing & receiving & paying for goods should be separated. The person who keeps track of the company's equipment and property should not have physical control or possession of the assets.
Intangible goods – amortization *EXCEPT GOODWILL
beg amount+purchase of intangible assets – amortization = ending amount
accounting – an information system that provides reports to stakehoulders about the economic activities and condition of business
Hоw mаny times аn hоur dо most college students check sociаl media? According to a previous study, the average is 2 times per hour. Do LMC students check social media more frequently? A sample of 50 LMC students report checking social media on average about 2.5 times per hour. What are the null and alternative hypotheses?
TEST!! Sales discount – Discount for paying early
intangible asets – Long-term resources that benefit business operations. They usually lack physical form and have uncertain benefits. Examples include patents, trademarks, copyrights, franchises, and goodwill.
W-4 Form. – Employee's Withholding Allowance Certificate.

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