Accounting I: Financial Accounting Ch 1

Retained earnings – Net income-dividends
General Ledger – A ledger that contains all account needed to prepare financial statements.
output – financial statements are the output of the accounting information system
Long-lived assets – tangible things like buildings and equipment; and intangible things like patents, trademarks and copyrights.
trading – debt and equity securities bought and held primarily for sale in the near term to generate income on short-term price differences
Owner Withdrawals – resources such as cash that an owner takes from the company for personal use
Income from operations is
A. Net sales less Cost of goods sold.
B. Net sales less Operating expenses.
C. Gross profit less Other expenses and losses.
D. Gross profit less Operating expenses. – D
Cash flow accounting – reports cash receipts and disbursements as they occur
Arbitrary timing of reporting
Mismatching of inflows and outflows
Endorsement in Full – Endorsement which uses the phrase, "pay to the order of"
Restrictive Endoursement – an endoursement resetricting further transfer of a checks ownership
The brain is in which cavity (cavities)?
Correcting entry – a journal entry made to correct an error in the ledger
The cost to the company of the goods that it sold during the year – Expenses
account payable – A liability backed by the general reputation and credit standing of the debtor.
Accounts Payable – current liability account which shows the amount a company owes for items or services purchased on credit
journalizing – Entering transaction data in the journal.
What are the three types of Inventory? – 1) Raw material inventory
2) Work- in process inventory
3) Finished- goods inventory
The brаin is in which cаvity (cаvities)?
How can a transaction affect only one side of the accounting equation? – If one account is increased, another account on teh same side of the equation must be decreased by the same amount.

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