Accounting Vocabulary Chps 1 3

True or False:

Most companies uses cash basis accounting – False. They use accrual accounting.

dishonored check – a check that a bank refuses to pay
Depreciation Methods – Straight line, Units of production, double declining balance
marketing principle – record expenses when they are incurred
recovering bad debt – two entries when collecting later payments. First reverse write-off. Second record amount for reinstated account. Two separate entries: debit accounts receivable, credit allowance for doubtful accounts; debit cash, credit accounts receivable
sales – Received $798 for services: credit __________
Two populations of lizards live in the same area. Which of the following evidence would convince you that they are two distinct species?
sale on account – A sale for which cash will be received at a later date
Fixed Cost – unit cost has an inverse relationship between activity and unit cost
total cost stays the same no matter what happens with activity
Convertible bond – Can be changed to common stock at a set price
When a funeral home makes a payment on a funeral coach which was purchased on credit, the transaction would be recorded by: – Debit Cash/Credit Accounts Payable
Internal users – Persons using accounting information who are directly involved in managing the organization. (p.5)
income statement – how much the company EARNED during – a specific period of time (monthly, quarterly, yearly)

value of what was provided to the customers (price)

cost of providing to customers
=
earnings (net income or loss)

Twо pоpulаtiоns of lizаrds live in the sаme area. Which of the following evidence would convince you that they are two distinct species?
Using a budgeted income statement to plan – …

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