Basic Accounting Terms

An equation showing the relationship among assets, liabilities, and owner's equity – Accounting Equation
What are the requirements of the Companies Act 2006? – 1. True and fair view – Accounts should give a true and fair view of the performance and its financial position. This overrides all other requirements in the preparation of accounts.
2. Format of disclosure – Both the balance sheet and the income statement are obliged to be presented in prescribed formats.
Sales Return – Credit allowed to a customer for the sales price of returned merchandise, resulting in a decrease in the vendor's accounts receivable.
Sales Discount – Reduction in the amount of cash received from a customer for early payment.
recond – zapis, rejestr, protokół
Hughes has a debit balance of $5,000 in its Allowance for Doubtful Accounts before any adjustments are made at the end of the year. Based on the review and aging of its accounts receivable at the end of the year, Hughes estimates that $60,000 of its receivables are uncollectible In this situation, the amount of bad debts expense that should be reported for the year is
A. $5,000.
B. $55,000.
C. $60,000.
D. $65,000. – D
Posting – Transferring from a journal to a ledger
Promissory Note – A written promise to pay a specified amount of money on a specific date.
Expenses always "?" assets – ? = Decrease
Herrnstein’s (1961) experiment using a two-key concurrent VI VI schedule is described by _______.
Direct Materials – Become a part of the finished product and are easy to track how much is used to make ONE product
Opening an Account – Writing an account title and number on the heading of an account.
federal umemployment tax act – the federal act imposed upon each employer for the purpose of financing the administration costs of the federal and the state unemployment compensation programs
What are non- current assets comprised of? – 1) Fixed- Assets
2) Other Assets
Herrnstein’s (1961) experiment using а twо-key cоncurrent VI VI schedule is described by _______.
Post closed trial balance – list of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.
Freight on board – FOB stands for

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