2 basic methods of measuring income!!!!!! – Accruals concept: expenses and revenues are recorded in the period they occur, weather cash is involved or not, ex. Depreciation
Cash basis: recognizes impact only when the company receives or pays cash (common for gov accounting)
sales invoice – an invoice used as a source docment for reading a sale on account.
The report that shows the financial condition of the business at a point in time is called the – Statement of Financial Condition and Balance Sheet
Are the company's operations profitable? – Income statement
Quick Ratio Formula – Ratio suggests good liquidity.
Quick Ratio = Quick Assets / Current Liabilities
general journal – the most basic form of journal
Product costs are expensed as cost of goods sold
where do internal transactions occur – within the organization
raiders – a person or group of people that attempt to buy over 50% of the sharesof a company in order to control the company by using the voting power of the stocks
Prоduct cоsts аre expensed аs cоst of goods sold
Service Commitments – Government policy papers, service delivery plans and national targets for the country or a district as well as politicians promises are all what are known as commitments. Commitments are promises that the state, government officials and politicians have made to citizens. Knowing what these commitments are is important for accountability work. It is another thing you can check up on. See if the promises have been delivered on. Remember that government commitments to service delivery also imply that services will be provided equally to women and men.