Financial Accounting – Accounting information and analyses prepared for people outside the organization.
Capital – What the business owes the owner
Accounting – System of communicating financial information to interested users/parties, e.g. individuals/households, owners, potential investors, IRD, banks, creditors, suppliers and managers
merchandise purchases for resale are recorded in the: – purchase journal
S corporation – A type of corporation in which profits are taxed in the same manner as those of a partnership, avoiding double taxation
Cost Principle – An accounting principle that states that assets should be recorded at their own cost.
Two primary qualities that make accounting information useful for decision-making purposes. – Relevance and Faithful Representation.
According to generally accepted accounting principles, a sale is recognized when
Lack of funds – fehlende Geldmittel
cash flows from financing activities – reports cast transactions related to cash investments by owner, borrowings, & withdrawal by owner
Accоrding tо generаlly аccepted аccоunting principles, a sale is recognized when
equites – finical rights to assets of business
Working capital – an absolute measure of a company's ability to finance its operations. (More is better)
Profit and loss statement equation – profit= revenue – expenses