Principles Of Accounting Level 1 Chapter 1

extraordinary repairs – expenditures that EXTEND the service life of an asset
Income Statement – a financial statement showing the revenue and expenses for a fiscal period.
Income statement – the key components of this statement are net sales, cost of goods sold, gross profit, total operating expenses, and net income (loss).
interest expense – cost of money (borrowing) over time
Off Balance Sheet Financing – An obligation that does not appear on the balance sheet.
dishonored check: a check that a bank refuses to pay – dishonored check: a check that a bank refuses to pay
Petty cash – an amount of cash kept on hand and used for making small payments
How many amino acids are responsible for producing all the various types of proteins?  
What is an asset? – An economic resource that can be sacrificed to produce additional value to the company, ex. Machine bought for cash
Expense – ~ Outflow of value
~ Asset down or liabilities up
~ Equity decreases as profit falls
– Not because of more drawings
Liquidity – The ease with which assets can be converted to cash in the normal course of business
Hоw mаny аminо аcids are respоnsible for producing all the various types of proteins?  
Financing receivables – amounts owed to a company for financing the purchase of goods or services for customers. Customers will pay for the goods or services over a period of time. interest is charged
Is input vat always reclaimed in full by VAT registered companies? – Usually yes, but there are some exceptions, ex. entertainment
Expenses – Expenses are DECREASES in ECONOMIC BENEFITS during the accounting period in the form of OUTFLOWS or DEPLETION OF ASSETS or INCURRENCES IN LIABILITIES that RESULT IN DECREASES OF EQUITY OTHER THAN THOSE RELATING TO DISTRIBUTION TO EQUITY PARTICIPANTS.

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