Financial Accounting Chapter 1

Corporation – a business firm whose articles of incorporation have been approved in some state
Revenue Expenditure – Expenditure that can impact on the business within a year
overheads, operating costs – Betriebskosten
income tax – short section reporting federal and state taxes levied on income from continuing operations
Invoice – A form describing the goods or services sold, the quantity, and the price.
Owners Equity – Decrease – Expenses, Withdrawal.
Capital Stock + Retained Earnings – Equity
Suppose that S. Korea has a positive Capital Account balance. This tells us that: 
How much profit did the company earn during 2002? – 2002 Income Statement Revenues and Expenses, 2 options
the income statement is for a period of time – it is NOT cumulative since the first day of business

the income statement often shows two or three comparable periods

the period of time sis typically a month, a quarter, or a year

How current ratio is determined – Current assets / current liabilities
Suppоse thаt S. Kоreа hаs a pоsitive Capital Account balance. This tells us that: 
Book Value Formula – cost- accumulated depreciation= book value
Entries made at the conclusion of a fiscal period to bring accounts up to date are called: – Closing
account title – The name givin to the account
Phil Casey , Withdraw – acc. from taken out of business for use

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