Midterm #1- Top 10 Ten Trouble Questions
6. Using the information below from the accounting records of Thomas Corporation, owners' claims
to the company's resources amount to:
Net income $100,000
Retained earnings $2
Accounting Chapter 2 Notes
Roles of Financial Accounting: Measure business activities of the company.
Communicate those measurements to external parties for decision-making purposes.
Identify the most Basic Steps in Measuring External Transactions:
Financial Accounting: measures business activities of a company and communicates
those measurements to external parties for decision-making purposes.
Managerial Accounting: deals with the methods accountants use to provide information
to an organizations
Revenue and Expense Reporting:
Accounting information necessary for decision making.
To be effective in decision making accountants must report revenues and expenses in a
way that reflects the ability of the company to create value for its owners.
Chapter 4 Notes
Account for Petty Cash: Companies like to keep a small amount of cash on hand at the
companys location for minor purchases such as postage, office supplies, delivery
charges, and entertainment expense
-To pay for these minor purchases, com
Forms of business Ownership and organization
5.1. It is known that the companies which produce innovative products tend to be hugely
profitable. Turning Technologies is the business which is functioning in a highly competitive and