Inventory
The inventory system in which each purchase and sale of merchandise is recorded in an inventory account
What is a Perpetual inventory System?
The process that begins with analyzing and journalizing transactions and ends with the post-closing trial balance
What is the Accounting Cycle?
The simplest form of an account
What is a T-Account?
Accounting Equation
What is Assets=Liabilities+Owner's Equity?
GAAP
What are Generally Accepted Accounting Principles?
The first units purchased are assumed to be sold and the ending inventory is made up of the most recent purchases
What is FIFO?
A summary listing of the titles and balances of account in the ledger prior to the posting of adjusting entries
What is Unadjusted Trial Balance?
Cash, land, supplies, and A/R are examples of this
What is an Asset?
A list of assets, liabilities, and owner's equity of a business entity as of a specific date, usually at the close of the last days of a month or a year
What is Balance Sheet?
SOX
What is the Sarbanes-Oxley Act?
The last units purchased are assumed to be sold and the ending inventory is made up of the first purchases
What is LIFO?
The journal entries that bring the accounts up to date at the end of the accounting period
What are Adjusting Entries?
Equipment (increase) & Accounts Payable (decrease)
What are accounts affected by the purchase of equipment on account?
A summary of revenues and expenses of a business entity for a specific period of time, such as a month or a year
What is Income Statement?
FASB
What is the Financial Accounting Standards Board?
The inventory system in which the inventory records do not show the amount available for sale or sold during the period
What is a Periodic Inventory System?
The entries that transfer the balances of the revenue, expense, and drawing accounts to the owner's capital account
What are Closing Entries?
The rights of creditors that represent debts of a business
What are Liabilities?
Statement of Owner's Equity
What is a summary of the changes in the owner's equity that have occurred during a specific period of time, such as a month or a year?
AICPA
What is American Institute of Certified Public Accountants?
Total cost of units available for sale / units available for sale
What is the Weighted Average Unit Cost?
Journal entries made the first day of the period that are the exact opposite of the related adjusting entries of the prior period
What are Reversing Entries?
The ability to convert assets into cash
What is Liquidity?
Cash Flow Statement
What is a summary of the cash receipts and cash payments for a specific period of time, such as a month or a year?
SEC
What is the Security and Exchange Commission?