International Accounting Standards

recording more revenue than is earned requires an adjusting entry that will include – a credit to unearned revenue
Payee – A person or company who will receive payment on a promissory note, check, draft or money order is called the
net loss – expenses exceed revenue
Transaction – Financial events that affect assets, liabilities, or owners equity
Stakeholders of a not-for-profit entity – may want financial accounting reports would include taxpayers, contributors, lenders, managers, financial analysts, attorneys, and beneficiaries
Qualitative characteristic being employed when companies in the same industry are using the same accounting principles. – Comparability.
Financial statements: These statements provide a company history quantified in money terms. – 1. the balance sheet

2. income statement

3. Statement of cash flows

4. statement of owners or stockholders equity

5. note disclosures are an integral part of each financial statement.

Suppose the central bank of Thailand decides to raise its interest rates. Interest rate parity will be re-established at some point because the price of the Baht will __________ now and rates of return to investors (adjusting for currency value changes) will ________.  
all entries made to your accounts payable ledger originate from: – purchase journal
cash payments journal
general journal
Verifiability – Accounting information is verifiable when different knowledgeable and independent observers can reach consensus that a particular representation is faithful
unsecured bonds – bond's back only by the issuer's credit standing; lesser like than compared bond
Suppоse the centrаl bаnk оf Thаiland decides tо raise its interest rates. Interest rate parity will be re-established at some point because the price of the Baht will __________ now and rates of return to investors (adjusting for currency value changes) will ________.  
Fixed liabilities – liabilities that are not due and payable within one year.
Contribution Approach Income Statement – Sales
-Var. Exp.
=Contribution Margin
-Fixed Exp.
=Net Ops Income
Interest Coverage Ratio – (Net Income + Interest Expense + Income Tax Expense)/(Interest Expense)
*See if business has enough income to service its debt

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply