Test Bank Ch 01 test bank Chapter 1 Test Bank Course Title: Course Code: Section: CRN: Financial

Financial Accounting Foundation. A private organization established to support and direct the activities of the FASB. A tax write-off that is a result of a depreciating asset.

Business events are recorded only at the end of the year. Accountants refer to an economic event as a a. Purchase. Sale. Transaction.

ACCOUNTING IN ACTION CHAPTER 1… OVERVIEW SUMMARY OF STUDY OBJECTIVES

A company can either have surplus of assets after paying its debts or have a shortage of assets in paying its liabilities. If the assets available to a company are sufficient to pay its debts, the company has a positive shareholders equity. Shareholders equity would be negative if the available assets cannot pay the debts of a company, and this can have a negative impact on the company. Shareholders equity does not single handedly depict a company’s financial health, there are other factors to be considered. If services are rendered for credit, then a.

Stands for generally accepted auditing standards, which detail the audit procedures and guidelines prescribed by the AICPA for the performance of a CPAs certified audit of a https://businesspravo.ru/Docum/DocumShow.asp?DocumID=150777&DocumType=59‘s financial statements. Review and analyze financial statements – ratios and other calculations and comparisons of numbers that are found in the financial statements. Revenues and costs that vary among decision options in the making of non-routine business decisions. Differential revenues and costs are always relevant in such decisions. A department or organizational unit in which the assigned manager has control over and is accountable for the costs incurred in the operation of that department or unit. The amount of contribution margin as a percentage of total net sales revenues. Potential assets and gains of the company that can NOT be recorded until they are fully realized, meaning that no future uncertainty remains and cash or some other property or enforceable right has been removed.

Financial & Managerial Accounting

This https://magnet4marketing.net/2012/07/21/signs-your-website-needs-major-overhaul/ reflects an under- or over-application of costs that should be corrected through an adjusting entry. This adjustment should leave the manufacturing overhead account with a zero balance and correct the under- or over-application to WIP. In practice, this adjustment usually includes an increase or decrease to cost of goods sold on the premise that most inventory produced during the period has been completed and sold by the end of the period.

• $100,000.
• An organizations obligation to provide certain specified benefits to employees in retirement.
• A list of all accounts used in the business.
• The ratio is calculated by adding amounts of selected current assets which are most liquid, and dividing that total by the amount of total current liabilities.
• The accounting treatment of an entity’s pre-combination interest in an acquiree is consistent with the view that the obtaining of control is a significant economic event that triggers a remeasurement.
• Many hospitals are operated on a non-profit basis.

An openal budget prepared by a manufacturing business to project the direct labor hours, costs and resulting cash outflows needed to meet a company’s budgeted volume of production. Cash discounts also refer to price reductions for credit customers making payments within a specified discount period. For example, a discount offer noted by “2/10, n/30” means a credit customer may take a 2% discount on any cash payment made on the account within 10 days of the date of sale. However, if any portion of the price is not paid within that 10-day discount period, then that portion must be paid within 30 days with no discount.