Chapter 1 thru 3
One year in length, a company's operating cycle
What is a fiscal year
Also known as temporary accounts
What are revenue, expenses, and drawings
This cost flow system records continuously to show inventory on hand for every item
What is the perpetual system
This party pays for shipping cost at FOB Destination
What is the Seller
This cost flow assumption will result in having a higher ending inventory
What is FIFO
This basis of accounting most popular as it records transactions regardless of cash being involved
What is accrual- basis accounting
Copyrights and patents are also known as this type of asset
What is intangible
At the end of the operating cycle, entities use this system to account for inventory sold over the lapsed period
What is the periodic system
As it pertains to freight, FOB shipping point- this party holds the title while in transit
What is the buyer
This cost flow assumption usually results in having a higher cost of goods sold
What is LIFO
Prepaid expenses and unearned revenues are examples of his type of adjusting entries
What are deferrals
Assets, liabilities, and owner's capital are what types of accounts
What are permanent accounts
Beginning inventory + purchases - ending inventory is this
What is the cost of goods sold
The agency holding these types of goods does not include them in their inventory
What are consignment goods
This cost flow assumption usually balances out the cost recorded over time
What is weighted average
As it pertains to the balance sheet, prepaid expenses are listed under this
What are assets
What is accumulated depreciation
As it pertains to purchases. these goods are sent back to the seller for a credit
What is a purchase return
FOB shipping point- title transfers here
This cost flow assumption usually results in lower tax liability
What is LIFO
The accounting equation
What is assets = liabilities + owners equity
2 types of incomes statements commonly used
What are single-step and multi-step income statements
As it pertains to purchases, you may see this 2/10 n/30
What is a purchase discount
While in transit, FOB destination, this party is responsible for any damages that happens to the merchandise
What is the seller
This cost flow assumption usually results in a higher net income
What is FIFO