Burney ACCY 201 Final Ole Miss. Verified Questions And Answers Graded A+ latest and updated

Accounting Definition - An information and measurement system that identifies, records, and communicates relevant, reliable, and comparable information. Accounting Equation - Assets= Liability + Equity Accrued Expenses - Costs that are incurred in a period but are both unpaid and unrecorded Advantages of Bonds - 1- No loss of ownership control 2- Interest is tax deductible 3- Can increase return on equity Advantages of Corporations - 1- Separate legal entity 2- Limited liability of stock holders 3- Transferable ownership rights 4- Continuous life 5- Lack of mutual agency 6- Ease of capital generation Allowance Method - an estimate of the total B/D Expected to result from that period's sales > records estimated b/d exp in the period when the related sales are recorded > reports a/r on the balance sheet at the estimated amount of cash to be collected