service life (3) – physical deterioration
paid-in capital – stockholders' investments
– common stock
Long-term Liabilities – Liabilities owed for more than a year
credit – Owner invested $30,000 to start the business: _______ capital
Wholesale Merchandising business – A business that buys and resells merchandise to retail merchandising businesses.
Long-Term Liability – An obligation that will not be satisfied within one year. May include bonds, leases, deferred taxes, pensions, and mortgages.
nominal accounts – income statement, balances represent activity over a certain period of time, revenue and expenses, transferred to retained earnings
Which of the following statements adequately reflects the concept of attitude component consistency?
Debtor – a person or business who owes a business money
accounting methods – Buchführungsmethoden
Errors – Accieential errors in recording transactions or applying principles
Name the 6 accounting concepts aka principles
(Info) – 1. The business is different from the owner
2. Money measurement
3. Objectivity/consistency, prove it!
4. Going concern, is not a fire sale
5. Accrurals: match revenues to expenses in the accounting period
6. Prudence aka conservatism
This leads to detailed rules and regulations, ex. GAAP
Which оf the fоllоwing stаtements аdequаtely reflects the concept of attitude component consistency?
Fundamental qualitative characteristics – relevant and faithfully represented to be useful.