Chapter 8: Receivables
a. Write-Off- way to make customers who wont pay, off the books
2. What are common types of receivables, and how are credit sales recorded?
i. A receivable occurs when a business sells goods or services to another
Chapter 24 Vocab: Responsibility Accounting and Performance Evaluation
1. Centralized Company- A company in which major planning and controlling decisions are
made by top management.
2. Decentralized Company- A company that is divided into busin
Chapter 24 Review: Responsibility Accounting and Performance Evaluation
1. Why do decentralized companies need responsibility accounting?
a. Decentralized companies are divided into segments with segment managers
making planning and controlling
Chapter 25 Review: Short-Term Business Decisions
1. How is relevant information used to make short-term decisions?
a. Decision making is a four-step process:
i. Define business goals
ii. Identify alternative courses of action.
iii. Gather and an
Chapter 22 Review: Master Budget
1. Why do managers use budgets?
a. Budgeting objectives
i. Develop strategiesoverall, long-term business goals
ii. Planbudget for specific actions to achieve goals
iii. Actcarry out the plans
Chapter 21 Vocab: Variable Costing
1. Absorption Costing- The product costing method that assigns direct materials, direct
labor, variable manufacturing overhead, and fixed manufacturing overhead to products.
Required by GAAP for external report
Chapter 11 Video Notes: Depreciation, Impairment, and Depletion
1. Explain the concept of depreciation.
a. DepreciationMethod of Cost Allocation
i. Depreciation is the accounting process of allocating the cost of tangible
assets to expense in a
Chapter 9 Vocab: Additional Valuation Issues
1. Average days to sell inventory- A measure that represents the average number of days
sales for which inventory is on hand. A variant of the inventory turnover, it is computed
by dividing the invent
Chapter 8 Vocabulary
1. Average Cost Method- Inventory-costing method that prices items in the inventory on
the basis of the average cost of all similar goods available during the period. Companies
that use the periodic inventory method use weig
Chapter 10 Objectives: Acquisition and Disposition of Property, Plant, and
1. Describe property, plant, and equipment. The major characteristics of property, plant,
and equipment are as follows. (1) They are acquired for use in operati
Chapter 9 Objectives: Additional Valuation Issues
1. Describe and apply the lower-of-cost-or-market rule. If inventory declines in value
below its original cost, for whatever reason, a company should write down the inventory
to reflect this loss
Chapter 8 Video Notes
1. Identify major classifications of inventory.
a. Inventory Issues
1. Inventories are asset:
a. Items held for sale in the ordinary course of business, or
b. Goods to be used in the production of goods to
Chapter 10 Vocab: Acquisition and Disposition of Property, Plant, and Equipment
1. Additions- Increase or extension of existing asses, such as adding a wing to a hospital.
Companies capitalize any addition to plant assets because a new asset is
Chapter 10 Video Notes: Acquisition and Disposition of Property, Plant, and Equipment
1. Describe property, plant, and equipment.
a. Property, Plant, and Equipment
i. Property, plant, and equipment are assets of a durable nature. Other terms
Chapter 9 Video Notes: Additional Valuation Issues
1. Describe and apply the lower-of-cost-or-market rule.
i. A company abandons the historical cost principle when the future utility
(revenue-producing ability) of the
Chapter 23 Review: Flexible Budgets and Standard Cost Systems
1. How do managers use budgets to control business activities?
a. Variances are differences between budgeted amounts and actual amounts.
i. Favorable (F) variances increase operating
Chapter 21 Review: Variable Costing
1. How does variable costing differ from absorption costing?
a. Absorption costing assigns all production costs to products: direct materials,
direct labor, variable manufacturing overhead, and fixed manufactu
Buyer: Ferguson Corp.
Accounts Payable- Fallon
Accounts Payable- Fallon
Accounts Payable- Fallon
Chapter One: Accounting and the Business Environment
1. Why Study Accounting?
a. Accounting is the language of business
i. How to measure the activities of the business, process that
information into reports (financial statements), and use those reports
9: Plant Assets, Natural Resources, and Intangibles
1. What do I do with this equipment?
a. Jerry Drake has been working hard at a new landscaping business for
several months. Things are great- sales are increasing every month,
and the customer base is in
A dollar received today is worth more than a dollar to be received in the
future because you can invest today's dollar and earn additional income so
you'll have more cash next year. The fact that invested cash earns income
over time is called the time val
Chapter 10 vocab:
Investor- The owner of a bond or stock of a corporation.
Investee- the Corporation that issued the bond or stock to the investor.
Security- A share or interest representing financial value
Debt Security- Represents a credit r
Chapter 2: Recording Business Transactions
1. Objective 1: Explain accounts as they relate to the accounting equation and describe
a. What is an account?
i. An account is the detailed record of all increases and decreases that ha
Chapter 1: Accounting and the Business Environment
1. Objective 1: Explain why accounting is important and list the users of accounting
a. Why is Accounting Important?
i. Accounting is the information system that measures business a
Chapter 1 Video Notes:
1. Identify the Major financial statements and other means of financial reporting
a. Financial Statements and Reporting
i. Essential characteristics of accounting are:
1. The identification, measurement, and communication
St. Johns College School Junior College
ACC 101- Principles of Accounting I
Semester I: August - December, 2016
Ms. Kenisha Williams, Mr. Pedro Popper & Mr. Thomas Tang
Class Schedule: Sectio
Chapter 22 Vocab: Master Budgets
1. Budget- A financial plan that managers use to coordinate a businesss activities.
2. Budgetary Slack- Occurs when managers intentionally understate expected revenues or
overstate expected expenses to increase t
Chapter 25 Vocab: Short-Term Business Decisions
1. Relevant Information- Expected future data that differ among alternatives.
2. Relevant Cost- A cost that is relevant to a particular decision because it is a future cost
and differs among altern
Chapter 23 Vocab: Flexible Budges and Standard Cost Systems
1. Static Budget- A budget prepared for only one level of sales volume.
2. Variance- The difference between an actual amount and the budgeted amount; labeled
as favorable if it increase
Chapter 26 Review: Capital Investment Decisions
1. What is capital budgeting?
a. Capital assets are long-term, operational assets.
b. Capital investments are acquisitions of capital assets.
c. Capital budgeting is planning to invest in capital a