Index
455
property, business account, 27
purchase allowances, 177, 206–207
purchase discounts, 177, 207–208
purchase journal, 259, 267–268
purchase returns, 176, 206
Q
Quebec Parental Insurance Plan (QPIP), 327,
333, 344
Quebec Pension Plan (QPP), 327, 333, 343
quick ratio, 156, 365–366
R
ratios.
See
financial ratios
recognizing expenses, 36, 68
recognizing revenue, 68
recording expenses, 36–39
recording revenue, 34–36
relevance, defined, 65
reliability, 65
rent expense, prepaid, 114–115
repaying debt, 14–16
representational faithfulness, 65
residual value, 118
resources, use of, 192
retail method of estimating inventory,
239–240
retained earnings, 352–353
return on equity (ROE), 369–370
returns
purchases, 176, 206
sales, 181–182, 209
special journals, 272–273
revenue
accrued, 107–108
defined, 5
ethics of reporting, 51
recognizing, 68
recording, 34–36
sales, 28
service, 28
unearned, 28, 112–114
risk, 370
rules-based accounting, 64
S
safeguarding inventory, 192
salaries expense, 109–110
sales
allowances, 181–182, 210
discounts, 182–183
returns, 181–182, 209
revenue, 28
sales journal, 258, 262–264
Sarbanes-Oxley Act of 2002 (SOX), 317
selling assets, 16–17
service business, financial statements, 32
service revenue, defined, 28
share capital, 352
shareholders, 61
shareholders’ equity, 29, 352–353
shares, 61
sole proprietorship, 59–60
source documents, 82
special journals, 258–259, 281–282
specific identification inventory method,
226–228, 249–250
standards for accountants, 70–71
statement of owner’s equity, 49–50, 137–138
statutory payroll deductions, 327–329
straight-line depreciation, 118
subsidiary (subledgers) ledgers
overview, 259–261
using, 261–273
.
See also
general ledger
T
T-accounts, 9–10, 20–22
TD1 payroll form, 345
temporary accounts, 139
time period concept, 68
timeliness, 65
Total Quality Management (TOM), 244
trade-offs of qualitative characteristics, 66
