Simple to establish
Broader skills and resources
|Property, Plant, & Equipment||
provide services (intangible products)
Planning, recording, analyzing, and interpreting,financial information.
The constraint of determining whether an item is large enough to likely influence the decision of an investor or creditor.
a business activity that changes assets, liabilities, or owner's equity
qwe, debts and obligations, creditors claim on assets
An independent intermediary to help ensure that management is properly applying GAAP to the companies financial statements.
|Average Collection Period||
365 Days/Receivables Turnover Ratio
|BE point in units||
=Fixed Expenses/Contribution Margin per unit
Cash discount offered by the buyer
organized summaries of a business's financial activities
Costs that aren't production costs (sales commission and rental costs of admn offices)
the procudure for arranging accounts in a general ledger, assigning account numbers, and keeping records current
Costs that are specifically traceable to a unit of business or segment being analyzed.
Trying to determine whether a marketing proposal will be cost effective.
cumulative income (and loss) not distributed as dividends
outstanding sotock that is repurchased by a company for later reissue, not an asset of firm but represents a reduction in stockholder's equity
A source of information for the journal
the maximum amount of earnings on which a tax is calculated
information is presented in such a way that a decision maker can recognize similarities, differences, and trends over different periods in one company or other companies.
Liabilities owed for more than a year
Revenues earned but not yet received in cash or recorded at the staement date.
who are the beneficiaries of a defined benefit trust?
|Schedule of Accounts Payable||
Amount due to the vendors
Cash received before a company earns revenues and recorded as a liability until earned
|What is a factor?||
Gross return or growth factor
dictates that a manager should be responsible for only items he or she can control
one who has made a sale is called a/an
A business that buts rew materials and transforms them into finished procduts by using labor and machinery.
|Sarbanes-Oxley Company Implication||
No loans may be made to executives
Section 404 internal control audit required
Section 302 holds management responsible
|adjusted trial balance||
list of accounts and balances prepared AFTER 0adjusting entries have been recorded in ledger.
|# of units x actual output||
standard quantity of material
|Comparative Condensed Income Statement||
-ALL FOR FIFO AND LIFO
-cost of goods purchased
-cost of goods available for sale
-income before taxes
written promise to pay a certain sum of money on a specific date
|multiple step income statement||
several steps in determining net income
|Chart of Accounts||
A list of accounts used by a business.
a proof of the equality of debits and credits in a general ledger
|Cash Debt Coverage Ratio||
(Cash Provided by Operations) / (Avg Total Liabilities)
|What is the Consistency Principle?||
Requires use of same accounting methods period after period so the financial statements are comparable across periods.
Intrest rate printed on the face of a note or bond
|Principle of a Note||
Amount that the signer of a note agrees to pay back when it matures, not including interest.
|Steps in the recording Process||
1. Analyze each transaction for its effects on the accounts2. Enter the transaction information in a journal (book of original entry)3. Transfer the journal information to the appropriate accounts in the ledger (book of accounts)
|one advantage of issuing bonds instead of stock is that||
interest is tax deductible wheras dividends are not
|what are the 3 items used in preparing statements of cash flows||
comparative balance sheet
current income statement
additional info ( how the cash was provided/ used during period)
|What is the First-Year Balance Sheet Initial Impact of Upward Revaluation of PPE (Under IFRS)?||
(1) Increase in Carrying Value Of Property, Plant, And Equipment
(Because, this is a direct consequence of the upward revaluation of Property, Plant, And Equipment.)
(2) Increase in Stockholders' Equity
Because, an upward revaluation of Property, Plant, And Equipment is
credited directly to Stockholders' Equity (bypassing the Income
|where we put cash and the uses and forms||
is included on the statemnet of cash flows