3A vocab

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Author:
abifulco
ID:
43516
Filename:
3A vocab
Updated:
2010-10-19 22:34:20
Tags:
3A vacab acct test
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Description:
acct 2 test 3A vocab
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  1. Accrual
    • what most companies use;recognize revenue when it is earned and expenses in the period incurred,without regard to the time of receipt or payment of cash (when the event
    • occurs, not when paid/have to pay)
  2. Strict Cash basis
    • companies record revenue only when they receive cash, and the
    • record expenses only when they disperse cash (when they receive or month have
    • to pay); all about collecting revenue and paying expenses; ignores revenue and
    • expense recognition
  3. main difference between the two
    TIMING
  4. compute sales
    cash collected from customers +/- accts receivable
  5. COGS
    operating expenses -/+ inventory +/- accounts payable
  6. depreciation expense
    accum dep. ending - accum dep. beginning
  7. operating expenses
    cash paid for operating expenses +/- prepaid expense +/- accrued operations expenses payable
  8. cash collected from operating expenses
    operating expenses - depreciation +/- payments +/- accrued expenses payable
  9. Cash collected from customers
    Net sales +/- accounts receivable
  10. interest income (accrual basis)
    cash received from interest +/- interest receivable
  11. wages expense (accrual basis)
    wages paid +/- wages payable
  12. interest expense (accrual basis)
    interest paid +/- interest payable

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